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Gazprom’s China contract offers no protection against low prices

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Gazprom’s China contract offers no protection against low prices

Post by Admin on Mon Aug 10, 2015 4:10 pm

Gazprom’s 30-year contract for gas supplies to China was based on an optimistic view of the oil market and offered no protection in the event of a prolonged period of low prices, the Russian company said on Monday.

The contract between the state-controlled Russian gas group and China’s CNPC was signed with much fanfare in May 2014, envisaging $400bn-worth of gas deliveries over 30 years in what Gazprom said was the largest contract in its history................

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