Beijing, Moscow to Finalise Important Energy Deals During Medvedev's China Visit

Beijing and Moscow are expected to sign couple of important energy deals during Russian Prime Minister's current four-day visit to China which began Monday.

People’s Daily reported Tuesday, quoting Russian Deputy Minister of Energy Anatoly Yanovsky, that two energy deals, namely the Yamal LNG deal and the Power of Siberia pipeline deal, are expected to be sealed during Dmitry Medvedev’s visit.

The two parties would finalise the Yamal LNG agreement signed in September. China’s Silk Road Fund (SRF) bought 9.9 percent equity stake in the Yamal LNG project. The framework agreement was concluded between Novatek and SRF in Beijing. Following the completion of the deal, the shareholder structure Yamal LNG will be as follows: Novatek (50.1 percent), Total (20 percent), CNPC (20 percent) and SRF (9.9 percent).

Yamal LNG project envisages the construction of an LNG plant with annual capacity of 16.5 million tons per annum based on the feedstock resources of the South-Tambeyskoye field.

During Medvedev’s trip China National Petroleum Corporation (CNPC) and Gazprom will also sign an agreement on the construction of the cross-border section of the Power of Siberia natural gas pipeline, People’s Daily reported. 

The Power of Siberia is a gas trunkline intended for natural gas delivery from the Irkutsk and Yakutia gas production centers to the Russian Far East and China (eastern route).

On May 21, 2014 Gazprom and CNPC signed the purchase and sale agreement for gas supply via the eastern route. The 30-year contract provides for Russian gas supplies to China in the amount of 38 billion cubic meters per year.