No agreement on gas prices for China - Gazprom deputy CEO.

12/10 Tass 76

VLADIVOSTOK, October 12 (Itar-Tass) -- Russia's gas giant Gazprom has
not yet approved the price of natural gas to be exported to China,
Gazprom Deputy CEO Alexander Ananenkov told reporters on Monday.

In his words, "the talks with China are continuing. They have not been
completed yet."
"When the talks are completed, Russian gas supplies will be possible
owing to vast resources in the east," Ananenkov said.
"The gas supply chain has not changed," he said, adding, "The company
will begin gas exports when the price issue is coordinated."
"Deposits of the Republic of Yakutia could serve as the basis for
future gas supplies to China," Ananenkov said, adding, "The Chayanda field
is one of such deposits. Its reserves are estimated at 1.3 trillion cubic
metres of natural gas."
"This field could become the basis for supplies to the countries of
Asia-Pacific Region at the second stage of Gazprom's eastern program," the
deputy CEO said.
He did not say what price would be acceptable for the company's
initial gas supplies. "The seller wants the highest price for his product,
but when the buyer wants to buy a large number of products, he wants the
minimum price," Ananenkov said, adding, "This buyer would like to purchase
lots of gas."
"We do not expect a breakthrough [in the talks with China], but we
think there will be serious progress in the talks," he said.
Gazprom could begin gas exports to China within three years after
reaching an agreement on the price, the company's deputy CEO said. "As
soon as we agree [on the price], we will build a system within three years
and start gas exports," Ananenkov said.
-0-usn/zak