Russia-China Natural Gas Pipeline Agreement

摘要

The conclusion of a decade-long negotiation between Russia and China was announced May 21 during Russian President Vladimir Putin's visit to Shanghai. The $400 billion natural gas supply contract between Russia's Gazprom and China's National Petroleum Corporation (CNPC) entails 38 billion cubic meters (Bcm) or 1.34 trillion cubic feet (Tcf) of Russian gas supply annually to China for 30 years via a new pipeline. The commercial agreement between the world's top energy supplier and the largest energy consumer came at a particularly interesting time when Russia's relationship with its European energy customers is under strain as a result of the ongoing crisis in Ukraine. While several key aspects remain unknown, this pipeline gas deal highlights the growing importance of robust Asian markets over comparatively stagnant European markets and reflects the eastward shift in Russian energy strategy.