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Gas price for China will be well above $350 – Gazprom Export

Published time: May 23, 2014 12:33
Edited time: May 23, 2014 16:29
Alexander Medvedev.(AFP Photo / Francois Guillot)

Alexander Medvedev.(AFP Photo / Francois Guillot)

The head of the Gazprom export arm Alexander Medvedev has said the gas price under the new $400 billion contract with China will exceed $350 per 1,000 cubic meters.

Despite Gazprom saying the price under the new contract with China will remain a "commercial secret", it will exceed $350 per thousand cubic meters, Alexander Medvedev said on the sidelines of the International Economic Forum in St. Petersburg.

"Now every housewife wants to know the gas price, but it is inappropriate", the head of the Gazprom export division said.

He also added that Gazprom “is very satisfied" with the new contract.

Medvedev confirmed Gazprom and China have preliminary agreed on a $25 billion advance payment for gas supplies. Itar-Tass earlier quoted a source close to the company saying the money would be spent to build the Power of Siberia pipeline which will have a capacity of up to 38 billion cubic meters.

Gazprom expects the contract with China will affect gas prices in the European market, Aleksey Miller, the head of the Russian gas major Gazprom said at the St. Petersburg International Economic Forum.

"Firstly we assume that the signing of this contract will impact European gas prices. Secondly, the competition for Russian gas resources has begun yesterday,” Miller said. “The Asia-Pacific is not only the largest and dominant market, but it is the Asia-Pacific market that is influencing the European and North American markets.”

Gazprom 2011 data - the latest numbers accessible on the official site – shows the average price for European customers is $313 per 1,000 cubic meters.

On Wednesday, Gazprom signed its biggest ever deal worth $400 billion over 30-years in a contract with CNPC under which the company will supply 38 billion cubic meters of gas to China per year. Russia may start gas supplies under the contract in four to six years time.

Comments (13)

 

Glen897 24.05.2014 08:03

George 23.05.2014 14:51



The projected growth of China's needs over 30 years are overestimated because manufacturing in China will slow down considerably over the coming years.

  


Oh dear! I think the subject may be a little above your comprehension level. Let me explain...
The "growth" is of the Chinese gas market, not the energy market or the economy as a whole. This growth is because China wants cleaner energy than the coal they use currently. Pollution is a large burden on the Chinese economy, so the Chinese gas market could grow even if the economy as a whole was in reccession.

 

conservative one 23.05.2014 23:03

I don't see in the article where he says "well above".

 

Aluyi 23.05.2014 18:08

brian 23.05.2014 16:50



Sta rt living in the 21ist century. EU/US are going backwards , Asia is once again on the rise. US in particular is BANKRUPT!

  


Now you are been very nice when you say the US is BANKRUPT... I would say DEAD but living on borrowed times... just my two cents.

View all comments (13)
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