Russia, China Sign Much Delayed Gas Deal

China and Russia on Wednesday signed the much delayed gas supply deal in Beijing, according a statement published by state owned China National Petroleum Corporation (CNPC).

'China and Russia Purchase and Sales Contract on East Route Gas Project' was signed at a ceremony attended by Chinese President Xi Jinping and Russian President Vladimir Putin.

CNPC Chairman Zhou Jiping and Gazprom CEO Alexey Miller signed the deal on behalf of China and Russia, respectively.

The deal was stuck as the two parties could not agree on price.

As per the newly signed deal, Russia will supply 38 billion cubic meters of natural gas annually from 2018 via east route pipeline for a period of 30 years.

Gas will be supplied from eastern Siberia and Sakha Republic Kovykta gas field. Gazprom would be responsible for field development, gas processing plants and pipelines in Russia. CNPC will be responsible for construction of facilities within China.