Platts: Russia, China poised to sign mega-gas supply deal Tuesday

Russia's president, Vladimir Putin, is set to put his problems with Europe behind him for a few days on a visit to Beijing. Putin hopes to return to Moscow with a slew of energy deals, including a pipeline gas supply deal with China for 38 billion cubic meters/year on May 20.

The two countries' gas giants, Gazprom and China National Petroleum Corporation, have already said they are in agreement on all the terms of a deal except the price, with both sides only prepared to concede that, not surprisingly, it would not be based on the US Henry Hub.

China is said to be unwilling to pay more than it pays Turkmenistan, from where its imports are set to rise. It says Russia has no other market for the vast reserves in eastern Siberia. Russia, for its part, wants to receive no less from China than it does from Europe, and points out that China's demand curve is rising sharply.
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