FT: China demands gas supplies via Power of Siberia-2 at domestic Russian prices
The main reason for the delay in negotiations between Russia and China on the “Power of Siberia-2” is the PRC’s intention to purchase natural gas at a price almost similar to the cost of fuel on the domestic market of the Russian Federation. About it reports the Financial Times (FT) newspaper, citing sources.
It is noted that Beijing does not want to make concessions on this issue and does not intend to overpay for future supplies of Russian natural gas along this route. Another reason for the delay in negotiations is the reluctance of the PRC to purchase a lot of fuel through the Power of Siberia-2.
China’s planned imports represent only a small portion of the pipeline’s annual capacity of about 50 billion cubic meters. Against this background, the prospect of reaching a final agreement on Russian gas supplies through the Power of Siberia-2 remains in question.
Earlier, Russian Deputy Prime Minister Alexander Novak announced Gazprom’s intention to complete negotiations on further supplies of natural gas via the Power of Siberia-2 and sign a contract with the Chinese CNPC in the near future.
Prior to this, Chinese Ambassador to Russia Zhang Hanhui reported that the parties were actively discussing the cooperation model, as well as technical and commercial issues on this project. However, since then, Russia and China have not reached any agreement.
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