Russian gas giant Gazprom on Tuesday signed a framework agreement with China National Petroleum Corporation (CNPC) to provide natural gas to the energy-hungry Asian giant, officials and state media said.
Officials from both companies signed the deal, the terms of which were not immediately disclosed, in the presence of visiting Russian Prime Minister Vladimir Putin and Chinese Premier Wen Jiabao.
Gazprom's chief executive Alexei Miller told reporters that the deal could see tens of billions of cubic metres of natural gas sent to China per year.
"It will be a long-term contract, about 70 billion cubic metres" of gas annually, Miller said.
Miller said supplies would be ferried to China along two routes — the Western route, from western Siberia, and the Eastern route, from eastern Siberia, the Russian far east and Sakhalin island.
"The Western option can be realised very quickly because Gazprom boasts a vast resource base in western Siberia," Miller said.
Miller said that the Eastern route is more complicated because it requires construction of gas-processing facilities.
Gazprom is keen to diversify its client base beyond its traditional European consumers, who have in recent years been looking for ways to reduce their dependence on Russian gas.
Putin's powerful deputy prime minister and energy czar, Igor Sechin, told reporters that a formal contract could be signed in June next year.
Sechin said if everything goes to plan, gas deliveries could begin in 2014-2015.
"China is a colossal market," he said.
"There are no limits to our work with our Chinese colleagues. There is gas — a lot of it. We will give as much as needed."
Miller said earlier that the two sides also had agreed to study the possible supply of liquefied natural gas, which could start as early as 2010.
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