Russia to supply China with gas at profitable prices-pres

MOSCOW, June 16 (Itar-Tass) - Russia will supply gas to China at
profitable prices for itself; conditions of a contract are being agreed
upon, said on Thursday President Dmitry Medvedev by the results of talks
withy Chinese President Hu Jintao.
Asked by Itar-Tass, Medvedev singled out among new projects "gas
agreements - western and eastern routes". "Documents are being thrashed
out," said the Russian head of state.
He called these understandings "strategic, for decades ahead". They
"give China stability and a possibility to plan for decades", Medvedev
emphasised. Agreements "for us are an expanding market, long-term
contracts at profitable prices for us," the president underlined.
The president's aide Sergei Prikhodko said that the question on
deliveries of natural gas would be discussed during the present Russian
visit by Chinese President Hu Jintao back before its start. He didn't even
preclude a chance of signing an agreement, referring to a forecast by
vice-premier Igor Sechin.
The latter said back in May that a package might be signed during the
Chinese president's visit to Russia. According to the vice-premier, two
routes are under consideration. It is planned to pump 30 billion cubic
metres annually along the western route and 38 billion cubic metres along
the eastern one. The agreement between Gazprom and the Chinese National
Oil and Gas Corporation is provided for up to 2030.
In October 2009, the sides signed a framework agreement on the main
conditions of gas deliveries from Russia to China, in December 2009 -
fundamental conditions of gas deliveries to China, which do not fix,
however, the final volumes of gas deliveries and its price. The
present-day talks deal precisely with volumes of deliveries and a price.
Gazprom links a date to start construction of an Altai trunk gas
pipeline from Western Siberia to China with the end of the talks with
Chinese partners and signing of a purchase-sale contract. Head of the gas
holding Alexei Miller said in December 2010 that Gazprom plans to start
construction in mid-2011 and to complete by the end of 2015.
Energy Minister Sergei Shmatko said earlier that the Kovyktino deposit
in Siberia is regarded as one of priority versions for gas deliveries to
China.
It is expected that the topic of cooperation in the gas sphere will be
also discussed at the Thursday talks between Hu and Vladimir Putin.
-0-bur/gor