Russia and China Agree on Oil and Gas-Supply Deals

This is on top of the oil Russia already supplies China annually

10/22/2013 | 05:05am US/Eastern

MOSCOW--Two of Russia's top energy producers announced Tuesday agreements with China to deliver oil and gas, as the countries move to cement stronger ties.

Under the terms of the deal, Rosneft (>> Rosneft' NK OAO) the world's largest listed crude oil producer will supply Sinopec Group--China's largest oil refiner--with 10 million metric tons of oil a year for 10 years, Rosneft President Igor Sechin said following a meeting of top energy and political officials in Beijing.

Russian Prime Minister Dmitry Medvedev later told reporters that the Rosneft-Sinopec contract is valued at around $85 billion, Russian news agencies reported.

Russia's largest independent natural gas producer, OAO Novatek (>> NOVATEK OAO), said it had agreed to deliver 3 million tons a year of liquefied natural gas from its Yamal LNG project to China National Petroleum Corp. for 15 years. The price will be indexed to the Japanese Crude Cocktail, a commonly used reference price index for long-term LNG contracts in Japan, the company said.

Moscow is increasingly looking to Asia for customers and funding to help develop its vast energy reserves, with demand in oil-and-gas-deficient China and parts of Asia soaring while it shrinks in other industrialized countries.

The growth in Russia-China energy links also comes at a time when global energy trade flows are being rechanneled as huge hydrocarbon reserves are freed from shale-rock formations in North America. Coal and gas normally sold to the U.S. is being displaced to Europe, in turn undermining demand for Russian gas.

"The agreements reached today are the evidence of consistent development of large-scale cooperation with our Chinese partners. The agreement will help Rosneft arrange additional funding for exploration and production projects and construction of the necessary infrastructure," Mr. Sechin said in a statement.

Additionally, Russia mining, metals and energy conglomerate En+ Group said it had signed a strategic cooperation agreement with Chinese power and coal producer China Huaneng Group to jointly develop power projects in Russia.

Mr. Medvedev, after meeting Chinese counterpart Li Keqiang, said he hoped a natural gas delivery contract between Russian state gas producer OAO Gazprom (>> Gazprom OAO) and China would be signed soon.

"During our negotiations, great attention was paid to the topic of oil and gas," Mr. Medvedev, who was once Gazprom's chairman, was quoted as saying. "Hopefully, the agreements on gas we are about to achieve soon will be turned into documents in a very short time."

Russia and China Agree on Oil and Gas-Supply Deals | 4-Traders

 

China, Russia to implement strategic projects in science, technology

(Xinhua) 20:31, October 22, 2013


Chinese Vice Premier Wang Yang (L) addresses the 8th high-level China-Russia Economic Forum in Beijing, capital of China, Oct. 22, 2013. (Xinhua/Wang Ye)


Chinese Vice Premier Wang Yang on Tuesday proposed China and Russia to deepen cooperation in science and technology and carry out strategic cooperative projects, such as the heavy helicopter, wide-body jet and nuclear energy.

Wang made the remarks when addressing the opening ceremony of the 8th China-Russia Business Summit Forum in Beijing.

Wang said 2013 is a pivotal and fruitful year for China-Russia relations, featuring high-level political relations, steady development of bilateral trade, effective investment cooperation, successful energy cooperation and increasingly improved cooperative mechanism.

China and Russia are a pair of good friends sharing weal and woe, and good partners of mutual benefit and common development, he said.

The deeper bilateral pragmatic cooperation goes, the stronger China-Russia comprehensive strategic and cooperative partnership will be, he added.

To expand China-Russia pragmatic cooperation, the vice premier suggested the two sides to optimize their trade structure, expand the items of import and export goods, and create new growth areas, such as high-tech products and agricultural products.

He said the two sides should promote mutual investment, improve investment environment, explore new ways for investment cooperation, and encourage enterprises of both sides to conduct cooperation in the forms of mutual equity participation, merger and acquisition, and bond issuance.

He also encouraged the two countries to expand local cooperation, and push forward the construction of transportation infrastructure, such as transboundary oil and gas pipelines, road and bridge, optical communication cables, and transmission grids.

Russian Deputy Prime Minster Dmitry Rogozin also attend the opening ceremony of the forum.

China, Russia to implement strategic projects in science, technology - People's Daily Online

 

China-Russia Relations at Unprecedented High Level: Medvedev

2013-10-22 17:17:11

Xinhua Web Editor: ZhangPeng

Visiting Russian Prime Minister Dmitry Medvedev said Tuesday that China-Russia bilateral relations have reached an unprecedented high level.

During an online chat with Chinese netizens on Xinhuanet.com, the official website of Xinhua News Agency, Medvedev said behind the bilateral partnership is a bilateral trade volume of nearly 100 billion U.S. dollars.

Medvedev said he discussed trade with Chinese Premier Li Keqiang during their meeting on Tuesday morning.

One hundred billion dollars is not the maximum, he said. "We can even reach 150 billion, 200 billion dollars or more."

Medvedev and Li on Tuesday co-chaired the 18th regular meeting between the Chinese and Russian heads of government to boost bilateral cooperation.

With bilateral trade reaching a record high of 88 billion U.S. dollars in 2012, the two countries have pledged to further raise the volume to 100 billion dollars by 2015 and 200 billion dollars by 2020.

Medvedev said both sides should push forward bilateral cooperation and improve the quality of cooperation in various fields, such as energy and the humanities.

Since 2006, the two countries have held reciprocal events, including the Year of Russia in China in 2006, the Year of China in Russia in 2007, language years in 2009 and 2010, followed by tourism years.

The two countries will launch the China-Russia Youth Friendly Exchange Year, he said.

"Bilateral relations have never reached such high levels. It is a good thing because we are neighbors," said Medvedev.

Medvedev arrived in Beijing early Tuesday for a two-day official visit to China. During his stay in Beijing, he will meet with Chinese President Xi Jinping and other leaders.

China-Russia Relations at Unprecedented High Level: Medvedev