27 September 2011

Alexander Medvedev: the Russia-China gas dialogue has agreed a gas pricing formula, while discussions with South Korea on the issue of increasing delivery volumes are underway

Alexander Medvedev, the Deputy Chairman of the Management Committee of Gazprom and CEO of Gazprom Export has said that the Russian and Chinese sides have agreed on the Russian gas price formula. He disclosed this at the "Sakhalin Oil and Gas" forum. The executive officer stressed that "under the already agreed price formula, the question on what the starting point of this formula is remains". According to him, when discussing the delivery conditions, each party presents its arguments.

Medvedev expressed confidence that an agreement on gas deliveries will be signed very soon. "The partners are not only listening but are also hearing each other. We hope that very soon, gas delivery contract will be signed" - he added.

With regards to cooperation with South Korea, the head of Gazprom Export noted that the parties "are discussing the possibility of increasing gas deliveries to 12 billion cubic meters a year from the originally planned 10 billion". The route of the future gas pipeline will pass through North Korea. Gas delivery volume in this country will be discussed. According to Medvedev, North Korea will likely use "blue fuel" for electricity production. He expressed confidence that the gas pipeline through North Korea would be economically beneficial.


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