Skip to content

Russia, China strike up massive gasoline agreement

By Catholic Online (NEWS CONSORTIUM)
5/21/2014 (3 years ago)
Catholic Online (www.catholic.org)

Russia will provide China with $400 billion worth of natural gas over 30 years

It's a massive deal between the world's largest natural gas producer and world's largest natural gas consumer. The nation of Russia has reached a $400 billion deal to supply natural gas to China through a new pipeline over 30 years. It's being hailed as a milestone between the two world economic giants.

Russian President Vladimir Putin called it an 'epochal event,' Both countries are satisfied with the price, he said, signing the agreement in Shanghai.

Russian President Vladimir Putin called it an "epochal event," Both countries are satisfied with the price, he said, signing the agreement in Shanghai.

Highlights

By Catholic Online (NEWS CONSORTIUM)
Catholic Online (www.catholic.org)
5/21/2014 (3 years ago)

Published in Business & Economics

Keywords: China, Russia, natural gas, pipeline, agreement


LOS ANGELES, CA (Catholic Online) - President Vladimir Putin is looking to China in order to bolster Russia's economy. Relations between Russia and the United States and the European Union have faltered on account of the Ukrainian crisis.

The accord, signed after more than a decade of talks, will allow state-run gas producer OAO Gazprom, or GAZP to invest $55 billion developing giant gas fields in eastern Siberia and building the pipeline, Putin said.

Hunger never takes a vacation --

Putin called it an "epochal event," Both countries are satisfied with the price, he said, signing the agreement in Shanghai.

Gazprom Chief Executive Officer Alexey Miller signed the deal with Zhou Jiping, chairman of China National Petroleum Corp. The agreement is for 38 billion cubic meters of gas annually over 30 years. It's estimated that the total value would be about $400 billion.

"This is the largest ever contract for Gazprom," Miller said. Supplies will start in four to six years, he said.

China may make as much as $25 billion in advance payments under the contract to invest in the necessary infrastructure, Russian Energy Minister Alexander Novak told reporters.

In return, Russia will invest $55 billion in the pipeline and the Siberian fields to feed it, Putin said. China will be responsible for a pipeline on its territory, will spend at least $20 billion, he said.

Russia and China will start talks on a second pipeline to the west of the initial route, Miller said.

Russian officials had said that previous to the agreement, the gas-supply agreement was closer than it had ever been. Talks, which started more than 10 years ago, repeatedly foundered on the issue of price.

"It's time we reached an agreement with the Chinese on this issue," Russian Prime Minister Dmitry Medvedev said in a Bloomberg Television interview. "It is very likely that there will be a contract, which means long-term contracts."

The price should be "fair and totally comparable to the price of European supplies," Medvedev said in the interview before Putin's visit.
 

---


'Help give every student and teacher Free resources for a world-class moral Catholic education'


Copyright 2017 - Distributed by THE CALIFORNIA NETWORK

Pope Francis Prayer Intentions for JULY 2017
Lapsed Christians.
That our brothers and sisters who have strayed from the faith, through our prayer and witness to the Gospel, may rediscover the merciful closeness of the Lord and the beauty of the Christian life.


Comments


More Business & Economics

'Budgets are moral documents'

Image of

The highly relevant quote, "Budgets are moral documents," has been arguably attributed to Rev. Martin Luther King, Jr. But if he didn't ... continue reading


Central bankers warn of looming global recession Watch

Image of A recession could be lurking around the corner and central banks have been asked to take note, especially in Asia.

A group of central bankers has warned that a great recession, possibly larger than the 2007-2008 recession is looming on a global scale. ... continue reading


The end of the farm as we know it has arrived - here's how we're about to change the way we grow food Watch

Image of Farming, with its backbreaking labor and myriad of challenges, is about to become an anachronism. Vertical farming will replace the traditional farm within the next few decades.

Farming as we know it is about to disappear. The entire disappearance may take generations to happen, and there will always be a few farms ... continue reading


Why Google, YouTube, Facebook and others need to be broken up -- or regulated Watch

Image of Monopolies are back, and they're taking over everything.

Is to time to break up the monopolies? As Google, Facebook and others grow larger, calls for their breakup are emerging. There is an urgent ... continue reading


Tesla Model 3 may fall short of forecasts, but it will still change the world Watch

Image of The Tesla Model 3 is the Model T Ford of electric cars.

The Tesla Model 3 is a game changer for the auto industry. It is a reasonably priced, well-designed electric car that looks good. It has ... continue reading


Never Miss any Updates!

Stay up to date with the latest news, information, and special offers.

Catholic Online Logo

Copyright 2017 Catholic Online. All materials contained on this site, whether written, audible or visual are the exclusive property of Catholic Online and are protected under U.S. and International copyright laws, © Copyright 2017 Catholic Online. Any unauthorized use, without prior written consent of Catholic Online is strictly forbidden and prohibited.