Tuesday, October 13, 2009

China and Russia Make Preliminary Gas Deal

Russia's Gazprom and China's China National Pertroleum Corp have signed a preliminary framework agreement pertaining to natural gas. The deal between the two would allow for 2.4 trillion cubic feet worth of gas to be shipped from Russia to China each year. The deal is expected to be one of gas for loans. China is hungry for more natural resources to support its immense population and Russia needs more funding for its energy companies. In an environmentally friendly move China is looking to diversify its energy resources and limiting its dependency on coal, one of the world's greatest pollutants. The original framework of the agreement was signed in the presence of both Prime Minister Putin and President Hu Jintao.

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