PUTIN SAYS GAS PIPELINE IS OF MUTUAL BENEFIT

PUTIN SAYS GAS PIPELINE IS OF MUTUAL BENEFIT- Putin says the new gas pipeline is one of the largest energy projects in the world

Russian President Vladimir Putin said today that the planned new Power of Siberia 2 gas pipeline to China was a “mutually beneficial project” and the price of the gas would be based on a market formula similar to the one for Russian supplies to Europe.

Russia proposed the route years ago, but the plan has gained urgency as it looks to Beijing as a customer in the place of Europe.

Russia and China signed a binding memorandum to build the pipeline during Putin’s visit to China this week, but Russian energy company Gazprom, which aims to start delivering gas via the pipeline by 2030, said pricing was yet to be agreed.

“This is one of the largest energy projects in the world,” said Putin, speaking at an economic forum in Vladivostok. Putin said the price would “be calculated using essentially the same formula as for deliveries to Europe … It is absolutely market-based.”