The asking price of natural gas ($400 per 1,000 cubic meters) supply by Russia to China is higher than our expectation

Said : Wang Ruiqi, senior analyst with Shanghai-based energy consultancy ICIS-C1 Energy, reported China Daily yesterday.

Chinese President Xi Jinping (L) with Russian President Vladimir Putin, in Moscow. (File Photo : Xinhua/Huang Jingwen)  

According to the report, China-Russia deal for natural gas delivery and cooperation on other projects is likely to be signed during Russian President Vladimir Putin's official visit to Beijing next week when he visits China to attend a summit of the Conference on Interaction and Confidence Building Measures in Asia from May 20 to 21 in Shanghai. It's his first trip to China since President Xi Jinping, took office.

Loading Gazprom's LNG carrier (Pic : Gazprom)

In view of the Western sanctions after the Crimean annexation from Ukraine, Russia is looking to Asian markets to sell it's natural gas to reduce dependency on Europe. Gazprom OAO - Russia's top natural gas producer - is reported to be supplying 38 billion cubic meters of gas annually starting from 2018 and increase it to 68 billion cubic meters later. The fuel will be supplied through China's western and eastern pipelines the construction of which will take two to three years.

In 2013 - with total consumption of 167.6 billion cubic meters - China became the third-largest natural gas user recording 13.9 percent year-on-year growth.

Russia's top natural gas producer, Gazprom OAO, plans to supply China with 38 billion cubic meters of gas annually starting from 2018 and increase it to 68 billion cubic meters. The fuel will be supplied through China's western and eastern pipelines. No timetable has been specified for the increased supply.

The China National Petroleum Corp. (CNPC), the nation's biggest natural gas importer, has also signed a deal with the Russian government to acquire a 20 percent stake in the Yamal liquefied natural gas project located in Northern Russia. It is a joint venture between Russia-based Novatek Inc, which owns 60 percent, France-based Total SA with 20 percent and CNPC, also with a 20 percent stake.