The FINANCIAL — Russian gas giant Gazprom signed an agreement with China on September 27 extending the terms of Russian natural gas supply to China, RIA Novosti informs.
The document was signed by Gazprom President Alexei Miller and President of the Chinese National Petroleum Coorportion Jiang Zemin during bilateral talks in Beijing as part of Russian President Dmitry Medvedev's three-day visit to China.
The agreement will "extend the conditions for the supply of natural gas" Gazprom vice president Alexander Medvedev said earlier on September 27 without revealing any further details.
The Gazprom deputy head also said that a "road map" on the gas supply contract would be signed no later than July 1, 2011.
Earlier this month Alexander Medvedev said that the agreement on the core terms of supply would include volumes, cut-off points and take-or-pay terms. He said Gazprom was ready to supply China with 30 billion cubic meters of gas a year from 2015.
Russia and China signed a gas supply memorandum in 2006, but a framework agreement was only signed in October 2009 as the parties could not agree on prices.
At the end of December 2009 Gazprom export and a subsidiary of Chinese oil and gas supplier CNPC PetroChina signed an agreement on the basic terms of gas supplies, which defines the basic commercial and technical parameters of Russian gas supplies to Chinese consumers.
The gas will be supplied from two areas of Russia: Western and Eastern Siberia, and Russia's Far East and Sakhalin.