Bocom Energy Weekly:Sector news around the block

Russia and China signed second gas deal. Putin and Xi signed an MOU on Nov 9 whereRussia’s gas producer Gazprom will supply 30bcm of natural gas annually from WestSiberia to China over 30 years starting in 2018. This comes in addition to theUS$400bn 38bcm gas deal signed in May that comes from the eastern route. Total gassupply from the two routes may reach 68 bcm annually which is equivalent to 42% ofChina’s current gas consumption and accounts for 19% of China’s gas demand forecastin 2020. It would also make China the largest consumer of Russian gas.

    CNPC will buy 10% interests in Russian oilfield in northeast Siberia. Russia’s Rosneftannounced a framework agreement on 09 Nov. CNPC will purchase a 10% stake inZAO Vankorneft, a subsidiary of Rosneft that operates the Vankor oilfield in northeastSiberia. The Vankor oilfield contains recoverable reserves estimated at 3.6 billionbarrels of oil and 6.4 trillion cubic feet of gas. This acquisition is part of the Russia