Russia, China Sign $400B Gas Deal After Decade of Talks

Discussion in 'Indo Pacific & East Asia' started by t_co, May 21, 2014.

  1. t_co

    t_co Senior Member Senior Member

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    Russia, China Sign $400B Gas Deal After Decade of Talks - Bloomberg

    Pipeline routes:

    [​IMG]

    $70+bn will cover 'pipelines' construction, which means multiple routes for Russian gas into China. Altai route could be extended to India. Power of Siberia route could be extended into China's central national network, which also feeds Myanmar, Vietnam, and Laos.

    Final price is TBD but between $330-360 per bcm. For reference, the average price of Russian gas going to Western Europe is $380 per bcm with transit fees, and $330 per bcm once transit fees paid to EU partners are removed.
     
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  3. rock127

    rock127 Maulana Rockullah Senior Member

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    Massive project.

    Good luck to Russia and China.
     
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  4. LETHALFORCE

    LETHALFORCE Moderator Moderator

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    Seems like sanctions against Russia have failed?
     
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  5. t_co

    t_co Senior Member Senior Member

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    Sanctions against Russia would still hurt, but this agreement signals that the China market can limit the damage sanctions can do. The fact that pricing is comparable to Europe shows that China would not gouge Russia in its time of need.
     
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  6. nirranj

    nirranj Regular Member

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    Good Deal for Russia and China. Hope India and China can resolve their differences and the Altai pipeline will one day extend into India...

    A much needed relief for the Russians.. The Chinese have proved their Economic might to the Americans by timing the deal...

    Good luck to both the Nations.
     
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  7. pmaitra

    pmaitra Moderator Moderator

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    We can lay pipelines across the Karakoram Pass. We have no border dispute there.
     
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  8. thakur_ritesh

    thakur_ritesh Administrator Administrator

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    There is a talk of extending this pipeline from China to India, and it seems Indians have already sent feelers to China and Russia on this.
     
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  9. badguy2000

    badguy2000 Respected Member Senior Member

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    the 30-year deal of 400 billion USD seem a big deal,but the yearly pay is just only 13 billion USD,which is really not a big deal to CHina.

    the "massive deal" is just a anti-USA pose .
     
  10. Ray

    Ray The Chairman Defence Professionals Moderator

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    So, this deal will salvage Russia from the negative effects of the European union sanctions and Russia closing the oil and gas tap to the EU?

    It is a win win for China by default.
     
  11. pmaitra

    pmaitra Moderator Moderator

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    EU sanctions will not only hurt Russia, but also EU. It will hurt EU a lot more than Russia. It would benefit the US fracking companies, as EU will be their market. Moreover, once Russia starts to flood the market with cheap conventional gas, the US fracking companies risk being ditched by EU, or EU consensus breaking apart due to economic realities. In the long run, the biggest beneficiary is PRC, the greatest loser the US, and in the short run, the beneficiary seems to be the US, and Russia, just about slightly, negatively affected, but that loss is more than offset by Russia's gain of Crimea, and its Black Sea Fleet's base.
     
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