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Pricing remains an issue, but negotiations expected to be completed soon
Russia and China are highly likely to nail down a natural gas deal during Russian PresidentVladimir Putin's visit to Beijing in May after years of negotiations, experts from both sides saidon Tuesday.
Sergey Pikin, director of Russia's Energy Development Fund, was optimistic about the deal,saying during a video interview that it's "100 percent" possible that a bilateral agreement willbe signed next month. However, Alexy Belogoriev, deputy director-general of the Institute ofEnergy Strategy in Russia, put the possibility at 50 percent. He said that even if the dealdoesn't happen during Putin's visit, it might be finished by this autumn.
Putin has urged Russian companies to expand theirexposure to Asia. Since Russia's actions in Ukraine havestrained relations with the West, the country needs to beless dependent on energy sales to Europe, he has said.
Russia exports about 160 billion cubic meters of naturalgas to Europe annually.
Domestic and international conditions are ripe forcompletion of the deal, said Sun Yongxiang, a researcherwith the Development and Research Institute of the StateCouncil, which is the nation's cabinet.
Pricing has been the core area of disagreement during thenegotiations. Sun said the final price may be around $400per 1,000 cubic meters.
Russia's top natural gas producer, Gazprom OAO, plans tostart supplying China with 38 bcm of gas annually startingfrom 2018. Russia has indicated it's willing to increase thesupply to 68 bcm, using both the western and easternpipelines.
Sun said that any advance payment required won't be a problem as long as the two can reachan agreement. "Russia can use the money on infrastructure construction related to gassupply," he said.
Xia Yishan, senior research fellow at the China Instituteof International Studies, said China is working ondiversifying its energy supply structure and Russia willplay an important role in this effort.
"The government plans to solve thesmog problem in10 years, which will mean a huge increase in naturalgas imports," said Xia.
"If Russia has the ability, it is possible that China's natural gas imports from Russia willaccount for two-thirds of Russia's total gas exports in future," he said.
Evgeniy Konygin, chairman of energy policy and utilization with the Russian FederationLeague of Industrialists and Entrepreneurs, said the two can also cooperate on new energyprojects, an area where China has many technological advantages.
Russia and China are highly likely to nail down a natural gas deal during Russian PresidentVladimir Putin's visit to Beijing in May after years of negotiations, experts from both sides saidon Tuesday.
Sergey Pikin, director of Russia's Energy Development Fund, was optimistic about the deal,saying during a video interview that it's "100 percent" possible that a bilateral agreement willbe signed next month. However, Alexy Belogoriev, deputy director-general of the Institute ofEnergy Strategy in Russia, put the possibility at 50 percent. He said that even if the dealdoesn't happen during Putin's visit, it might be finished by this autumn.
Putin has urged Russian companies to expand theirexposure to Asia. Since Russia's actions in Ukraine havestrained relations with the West, the country needs to beless dependent on energy sales to Europe, he has said.
Russia exports about 160 billion cubic meters of naturalgas to Europe annually.
Domestic and international conditions are ripe forcompletion of the deal, said Sun Yongxiang, a researcherwith the Development and Research Institute of the StateCouncil, which is the nation's cabinet.
Pricing has been the core area of disagreement during thenegotiations. Sun said the final price may be around $400per 1,000 cubic meters.
Russia's top natural gas producer, Gazprom OAO, plans tostart supplying China with 38 bcm of gas annually startingfrom 2018. Russia has indicated it's willing to increase thesupply to 68 bcm, using both the western and easternpipelines.
Sun said that any advance payment required won't be a problem as long as the two can reachan agreement. "Russia can use the money on infrastructure construction related to gassupply," he said.
"The government plans to solve thesmog problem in10 years, which will mean a huge increase in naturalgas imports," said Xia.
"If Russia has the ability, it is possible that China's natural gas imports from Russia willaccount for two-thirds of Russia's total gas exports in future," he said.
Evgeniy Konygin, chairman of energy policy and utilization with the Russian FederationLeague of Industrialists and Entrepreneurs, said the two can also cooperate on new energyprojects, an area where China has many technological advantages.