Gazprom, CNPC earmark Putin's May visit to China for gas contract signing
MOSCOW. Jan 22 (Interfax) - Gazprom and China National Petroleum Corporation (CNPC) are now looking to sign a gas supply deal in May, when Russian President Vladimir Putin visits China.
Gazprom CEO Alexei Miller and CNPC's board chairman, Zhou Jiping, earmarked the new date at a meeting in Beijing on January 22, the Russian gas giant's press office said.
"Both sides want a successful conclusion to negotiations and to sign a contract as quickly as possible. It was noted that the negotiations are progressing exactly on schedule, and that the contract will enter into effect in keeping with the approved main conditions, before the end of 2014. At the meeting it was suggested that the contract be prepared for signing during the Russian president's visit to China, planned for May," Gazprom said.
Gazprom's shares, which have risen in price over the last two days in anticipation of a contract with China, have started to fall on the news it will not be signed this side of May.
Gazprom had risen 2.3% to 149.08 rubles a share on the Moscow Exchange but this growth had slowed to 0.5% (146.36 rubles) by 4:30 p.m. The stock has risen 6.7% so far this week and its market cap has risen back above $100 billion.
The sides promised throughout 2013 that they would sign a contract by the end of 2013, but they could not agree on a price. The Russian and Chinese leaders are next due to meet in Sochi in February, but Gazprom said the plan was to draft the contract by a later date.
