Russian-Chinese gas contract: China’s state-run CNPC gas giant has indefinitely postponed plans to buy Russian gas from Gazprom that was to be transported via either the Altai or Power of Siberia pipeline in response to the slowdown of China’s economy. With growth in its gas consumption down from 12-13% in 2012-2013 to 2% in the first half of 2015 , China is now looking at cheaper alternatives such as LNG shipments from Australia, according to government sources quoted in Vedomosti.
CNPC was also known to be unhappy at the high price that Gazprom was quoting for construction of the pipeline and wanted to put the contract out to open tender, an option rejected by the Russian company.
The framework agreement on the supply of so-called “western route” was signed in November 2014 and provided for Russia to supply China with 30bn m³ each year for the next 30 years.