China National Petroleum Corp (CNPC), parent of overseas-listed PetroChina, and Moscow-based Gazprom, have reach an initial agreement to build two pipelines to transport up to 68 billion cubic metres (bcm) of Russian gas to China annually.
While pricing is the biggest hurdle in the negotiations, China and Russia are expected to reach a consensus over the price for gas imported through two cross-border pipelines by the end of the year.
According to China Daily, China will be able to produce up to 150 bcm of natural gas by 2020, while imports could reach about 90 bcm by then to meet the surging demand, Zhai Guangming, a senior expert with PetroChina, said in March.
“The country will need to pump 40-60 bcm of gas from Russia and central Asia through cross-border pipelines by 2020,” said Zhai.
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