China and Russia far apart on gas prices

Platts reports that China and Russia continue to be far apart on the price of gas under any agreement for Russia to export gas to China.

http://www.platts.com/RSSFeedDetailedNews/RSSFeed/NaturalGas/8024191

Russia is reported to want a price of US$350/1,000 cubic metres (US$9.90/mmbtu), with China offering US$235/1,000 cubic metres (US$6.65/mmbtu). Russia is selling Sakhalin LNG to China at a landed price of US$10.80/mmbtu.

Last year Russia and China signed an agreement for supply of 30 billion cubic metres a year from Russia starting in 2015, with the price to be agreed in 2011. At the time this was seen as  a competitive threat  to LNG. However China continues to pursue LNG while agreement with Russia does not appear likely any time soon.