Connecting to LinkedIn...

W1siziisijiwmtuvmdqvmtuvmdgvntqvmzgvnzi1l01ptlrbu0hfqkxpr19vtljftkrfukvex0lnqudfx3jlc2l6zwrfyw5kx3jlbmrlcmvklmpwzyjdlfsiccisinrodw1iiiwimtkymhgxmjuwiyjdxq

Blog

$400bn gas deal signed between Russia and China

23/05/2014 by

Blank

As the importance of gaining access to oil and gas remains a top priority for countries around the world, a new deal between China and Russia has come to light. The new contract will see Russia providing a gas supply to China with an estimated value of $400bn. This will be a vital export market lifeline for Moscow, as it strengthens ties with the east as Russia loses its supply grip on Europe.

The new deal was agreed on Wednesday as Vladimir Putin, the Russian president, visited Shanghai to meet with the Chinese president Xi Jinping. The agreement has taken a decade of careful negotiations and will be seen as an important milestone in moving forward after Russia has been vilified around the world as a result of its role in the Ukraine crisis.

As part of the new deal, the Russian company OAO Gazprom will supply up to 38bn cubic metres (bcm) of gas for China National Petroleum Corp, which is the largest oil company in China. The deal will last three decades, starting in 2018, and will set Russia up well in the long term, particularly if Europe continues to pull away from its reliance on Russian resources. Not every detail has been agreed yet, however, and though Gazprom did reveal a base price had been set, other details are not yet set in stone; for example, Russia’s energy minister, Alexander Novak, said that another intergovernmental deal was needed before the end of the year to ensure that both countries use tax exemptions for the contact.

The implied price for the gas is estimated to be between $350 and $390 per 1,000 cubic metres. This is readily comparable to the prices Gazprom already charges customers in Europe. Keun-Wook Paik, an author who has written about Russia’s oil and gas cooperation, said that the agreed 38bcm was just a start, with possible estimates rising to 130bcm every year. Meanwhile, Trusted Sources head of emerging market energy research, Stephen O’Sullivan, said: “Strategically it’s very important for Gazprom. It allows it to show Europe that it has other options.”

Despite the importance of the agreement, Gazprom has been shown to make concessions; for example, because of the company’s current global isolation, representatives in China were able to get a better deal. China also has many more pipelines of natural gas available than it did a decade ago when talks first started, allowing it to drive a harder bargain with Gazprom.

Written by Montash.

Montash is a multi-award winning, global IT recruitment firm. Specialising in permanent and contract positions across mid-senior appointments which cover a wide range of industry sectors and IT functions, including:

ERP, BI & Data, Information Security, IT Architecture & Strategy, Scientific Technologies, Demand IT and Business Engagement, Digital and E-commerce, Infrastructure and Service Delivery, Project and Programme Delivery.

With offices based in London, Montash has completed assignments in over 30 countries and has appointed technical professionals from board level to senior and mid-management in permanent and contract roles.

comments powered by Disqus

Social Stream

Latest News

W1siziisijiwmtcvmdkvmjevmdgvndmvmduvmtmxl1vudgl0bgvkigrlc2lnbiaomjmplmpwzyjdlfsiccisinrodw1iiiwimzgwedewmcmixv0

Why do we punish the victims of hacking?

2017-09-21 09:00:00 +0100

Hacks occur every 39 seconds, with 95% of them targeting governments, retailers and the tech industry. If the hackers are caught, they'll face prison time under the Computer Misuse Act. More often than not, the businesses who are victims of those attacks expose themselves to punishment of their own. The laws that determine the duty of protection owed to businesses and their customers is both vague and broad, making them question just how much protection...

W1siziisijiwmtcvmdkvmtgvmtavmtivndyvodeyl1dvbwvuigluihrly2ggkdiplmpwzyjdlfsiccisinrodw1iiiwimzgwedewmcmixv0

Tech is for girls... and always has been!

2017-09-18 10:00:00 +0100

Today, it's hard to deny that the IT and tech industry is a male-dominated field. Women earn only 28%[1] of computer science degrees, while the quit rate for women in the high tech industry is 41%[2], twice as high as it is for men. These two statistics would suggest that perhaps women aren't just discouraged from entering the tech field, but may find it a challenging environment to work in both in terms of treatment and pay. Facebook chief operating of...