CNPC CALLED 'WINNER' IN GAZPROM GAS DEAL

The $400 billion natural gas deal Gazprom signed with China National Petroleum Corp. last month strongly favors the Chinese company and its country, writes an analyst with Chatham House, the Royal Institute of International Affairs, London (OGJ Online, May 21, 2014). "At best, the contract with China will barely allow Gazprom to cover costs," writes Ilya Zaslavskiy, Robert Bosch fellow in the think tank's Russia and Eurasia Program. "At worst, it could expose its monopoly and result in huge losses." Gazprom is to supply 38 billion cu m/year of gas under the 30-year deal at an average price, confirmed by Russian Energy Minister Alexander Novak, of $350/thousand cu m.