BEIJING, MOSCOW EDGE TOWARDS MAJOR DEAL ON GAS SUPPLY

BEIJING - Russia is set to supply China with natural gas in a strategic deal reached by the Vice-Presidents of the two countries. Russia agreed to provide an annual supply of 38 billion cu m of natural gas through an eastern pipeline to China. The deal builds on a framework agreement from 2009 where Russia agreed to deliver 70 billion cu m annually for 30 years, starting in 2014. China consumes roughly 145 billion cu m of natural gas, and will import 78.5 billion cu m by 2014. The announcement comes a few weeks before Xi Jinping’s scheduled state visit to Moscow.