Extract from AFR article today on Gazprom gas supply negotiations with CNPC.
++++++++++++++++++++++++++++++ Gazprom pins hopes on Putin
On Monday, sources close to Gazprom and in the gas industry said it wanted China to pay $US25 billion now to secure future gas supplies, whereas China had so far been reticent, concerned that other suppliers would seek similar deals.
"We are pinning our hopes on Putin's May visit," a source at Gazprom said.
For its part, Beijing has been pushing to secure equity stakes in gas fields in eastern Siberia, which would be the main source of supply.
The agreement that could be signed is a 30-year contract for Gazprom to supply China National Petroleum Corp with 38 billion cubic meters (bcm) of natural gas per year.
Should the deal be finalised this week, construction of a new pipeline is expected to begin by the end of 2014 and start delivering gas by 2018.
WCL Price at posting:
41.5¢ Sentiment: LT Buy Disclosure: Held
