Russian gas supplies to the Middle Kingdom will be postponed
Contrary to earlier announced plans, «Gazprom» will not start deliver Russian gas to China by 2011. The main stumbling block in the ongoing negotiations between Russia and China became the price of gas. Meanwhile yesterday, the parties continue to work in this direction, and yesterday signed a memorandum of understanding on cooperation in the sphere of natural gas. Analysts believes that despite all the difficulties, «Gazprom» and China will reache an agreement in the ongoing negotiations. In doing so, experts noted that a strong demand of China in Russia’s gas will come only after 2015.
«Gazprom» and China will not begin to deliver on time Russian gas to China as it was previously planned in 2011, said at a press conference the Deputy Head of the gas concern Alexander Ananenkov. So the parties continue to negotiate on the price, which was not define yet.
Meanwhile, Russia and China yesterday signed a memorandum of understanding on cooperation in the sphere of natural gas. Such an agreement could be reached as a result of negotiations between the President Dmitry Medvedev and Chinese President Hu Jintao, who arrived in Russia with official visit. In Eastern Siberia and the Far East planning to make a unified system of natural gas production and gas transportation.«Gazprom» will coordinate the implementation of the so-called Eastern gas program.
The head of the Russian-Chinese Center of Trade and Economic Cooperation Sergei Sanakoev believes that the parties were unable to agree on transfers due to financial instability. According to him, in times of crisis, it is difficult to suggest how to change gas prices, so Russia and China are trying to maximize benefit.
Analyst of «Troyka Dialog» Valery Nesterov noted that the share of gas in China’s energy is low. Famine demand for Russian gas will be felt only after 2015. The expert said that China has an agreement with Turkmenistan for the delivery of 30-40 billion cubic meters of gas. The main problem is the ongoing negotiations, according to Mr. Nesterov, that Russian gas can not be cheap due to large distances and high transportation costs. The cost of the pipeline «Altay» will be not more than 10 billion dollars. Experts agree that despite the complexity of the negotiations, the parties did not abandon the deal, Russia will supply gas to China. So countries should agree not only on price, but on the pouts and volume.
