The oil deal signed earlier this year calls for $25 billion in Chinese funding to support construction of a pipeline to supply oil from Russia's vast, untapped Siberian reserves to China — the world's second biggest oil and gas consumer.
In exchange, China was guaranteed a 20-year supply of crude oil — only part of the $100 billion in China-Russia energy-related deals agreed to this year.
SHOOT: Russia is the the world's largest producer of oil, even greater than Saudi Arabia, but their consumption is more, making Saudi Arabia the world's #1 exporter.
Another Russian deputy prime minister, Igor Sechin, who is Moscow's point man in energy talks with Beijing, declined to confirm any deal between Russia's state-run natural gas monopoly Gazprom and Chinese partners, but implied one was in the works.
"We have plenty of gas. We can give them as much of it as they want," he said. "China is a colossal market, and its very important for Gazprom to diversify" its markets.
The energy agreement is expected to be a gas-for-loans deal similar to a $25 billion oil-for-loans deal that was completed earlier this year, according to Chinese media reports and analysts.
Russia's cash-strapped energy companies need Chinese funding, while Beijing has welcomed the chance to further diversify sources for energy needed to fuel its fast-growing economy. The global economic crisis and changing market conditions have further spurred cooperation as lower demand from Europe has spurred Russia to diversify markets for its oil and gas.
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clipped from news.yahoo.com
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