Gas Agreement Signed Between Russia and China

According to an official from PetroChina Company Limited (0857.HK), a gas agreement has signed between Russia and China during the time Mr. Vladimir Putin, Prime Minister of Russia Federation, visited Beijing.

The official also indicates that Russia and China will sign the gas agreement on Oct. 13 in Beijing. But he refused to provide more details about the agreement.

According to Bloomberg, Russia and China has signed an oil supply agreement worth $100 billion this year. At present, Russia and China is negotiating a gas agreement which may lead China to become the largest employer of the Russian-based energy giant, Gazprom.

A pipeline about 1,030 km in length is planned to build from Skovorodino, Russia to Da Qing City, China which is the main oil center located in East Northern China. In May, a pipeline from Siberia is started to construct within China's border.

The pipeline is estimated to operate until 2010. The pipeline will transport 150 thousand tons of crude oils from Russia to China during year 2011 to 2030.