August 2014, Vol. 241, No. 8

Features

Russia-China Natural Gas Pipeline Agreement

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

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