Gazprom and CNPC disputes about the amount of gas advance payment
Edited by Rhod Mackenzie / 2014-10-10 05:50:52
China Oil and Gas Russia China Oil and Gas Power of Siberia (Sila Sibiri) Russia Oil and Gas Gas Gazprom Pipelines
Yesterday Chinese authorities approved a plan on the construction of Chinese gas pipeline, which will be the extension of Power of Siberia and should be launched in 2018. But Gazprom itself hasn’t yet reached an agreement with the Chinese on attraction of $25 billion of advance payment for the Russian section of the pipe: according to the Kommersant, the parties can’t agree on the credit rate. This is the key issue, because Western capital markets are closed for Gazprom due to sanctions. The monopoly also couldn’t attract loans under the South Stream gas pipeline in time, while the project itself rose in price by 47%.
