Monday, 27 September 2010

Russia eyes commercial gas deal with China next year

Russia eyes commercial gas deal
with China next year - A visit by Russian President Dmitry Medvedev to
Beijing has not brought a deal on gas pricing with China, the vital element
that would allow the world's top gas exporter to sell to the fast-growing
Chinese market.

"We are still in talks, the talks will continue, we are now agreeing on
separate parameters," Russia's Deputy Prime Minister Igor Sechin told
reporters on Monday.

"Russia is ready to fully ensure China's increasing demand for gas... There
is a mutual understanding. If we come to an agreement on all matters
discussed -- we have no doubts in it in principle -- then Russian gas
exports will start from 2015. We expect commercial contracts by the middle
of 2011."

China is planning to double the share of gas in its energy mix over the next
decade as part of a wider drive to wean its booming economy off coal, the
cheapest but dirtiest fossil fuel.

Russia, which has the world's biggest gas reserves, is keen to diversify its
exports away from Europe by building new pipelines and selling gas overseas
in the form of liquefied natural gas.

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