Gazprom is going to build Sila Sibiri pipeline using a Chinese credit
Gazprom is going to build Sila Sibiri pipeline with the use of the Chinese credit. The holding will pay for the credit and the interests via gas supplies to China. The President of Russia V. Putin is going to visit China in the near future for the closure of the contract between Gazprom and CNPC.
On May 15th, the chief of Gazprom A. Miller and the chief of the State Energy Management Department of China Wu Xinxiong met for the coordination of the contract terms. However they failed to agree on the gas price.
Meanwhile, Gazprom awaits raising of a large credit and hopes to pay it back with gas. The sum of the credit will cover all expenses to construction of the pipeline
Russia and China have been negotiating about gas supplies to China for 10 years. Now they discuss closure of the contract for 30 years under which Russia will annually supply to China 38 billion cubic m of gas. Supplies will start in 2019 with the launch of the pipeline.