China Russia gas deal - massive

[Indofred]

BBC News - Russia signs 30-year gas deal with China

Russia's President Vladimir Putin has signed a multi-billion dollar, 30-year gas deal with China.

The deal between Russia's Gazprom and China National Petroleum Corp (CNPC) has been 10 years in the making. No official price has been given but it is estimated to be worth over $400bn.

Russia has been keen to find an alternative energy market for its gas as it faces the possibility of European sanctions over the crisis in Ukraine.

Gazprom shares rose 2% on the news.

I wonder how this will effect European gas supplies and if the United states will try to stop it.

 

[Book of Jeremiah]

BBC News - Russia signs 30-year gas deal with China

Russia's President Vladimir Putin has signed a multi-billion dollar, 30-year gas deal with China.

The deal between Russia's Gazprom and China National Petroleum Corp (CNPC) has been 10 years in the making. No official price has been given but it is estimated to be worth over $400bn.

Russia has been keen to find an alternative energy market for its gas as it faces the possibility of European sanctions over the crisis in Ukraine.

Gazprom shares rose 2% on the news.

I wonder how this will effect European gas supplies and if the United states will try to stop it.

It won't and we can't, Indo. The Russians have the monopoly on gas supplies in Europe. What has happened is now that China has become a partner with Russia with this 400 billion dollar deal - the Chinese can still do business with Europe if the Russians are sanctioned. Put has just made sure of it. Anything Putin does has a motive behind it and strategy being played out. For instance, the naval drills with China in the South China Sea? That move has an endgame to it and we are the ones they plan on drawing into their trap. There is no way we won't be drawn in. imo.

 

[Mr. H.]

We are quite capable of exporting LNG across the globe. Obama is our only obstacle.

 

[Moonglow]

The farther you transport a good or product the higher the end cost, therefore Russia has the advantage because of location, location, location...

 

[Mr. H.]

The farther you transport a good or product the higher the end cost, therefore Russia has the advantage because of location, location, location...

U.S. natgas is priced at a fraction to that of international markets. Russia has the advantage of being governed by a Putin and not an Obama. Obama is this nation's greatest obstacle to... greatness.

 

[longknife]

$400 BILLION Gas Deal!

I remember when numbers with six figures looked big. But now, even millions don't count anymore. Look at this number - $400,000,000,000.00 Can you really get your mind around it?

http://www.zerohedge.com/sites/default/files/images/user5/imageroot/2014/05/Putin Xi smiles_1.jpg

Well, these two seem to comprehend what it means to their countries. Read more @ Russia And China Finally Sign Historic $400 Billion "Holy Grail" Gas Deal | Zero Hedge

 

[dilloduck]

Aren't these technically corporations that are making deals with each other and not countries ? I understand that they are hard to differentiate from each other but if say America made a trade agreement worth billions would American citizens see a cent of it ?
I think not.

 

[Indofred]

I get the idea there's a hell of a lot more than a gas deal here.
The west, especially the EU and America are pushing against Russia and China.
Those two getting closer is less than a shock.

 

[Indofred]

Since I managed a red brick for the post above, I wonder if hunter would care to explain his opinion on the subject.

 

[Mr. H.]

Aren't these technically corporations that are making deals with each other and not countries ? I understand that they are hard to differentiate from each other but if say America made a trade agreement worth billions would American citizens see a cent of it ?
I think not.

Read up on Gazprom and CNPC.

Here is an example of how a U.S. corporation (or a group of investors/corporations) goes about exporting natural gas...


U.S. Approves Natural-Gas Export Plan With Freeport Project - WSJ.com

See any difference?

 

[theliq]

We are quite capable of exporting LNG across the globe. Obama is our only obstacle.

It has also put Australia in a great position too with LNG gas exports(we already deal with a lot of Countries including China)

I bet the Ruskies are selling to the Chinese at a cheaper rate than Europe.just sayin..steve

 

[Vikrant]

The legendary West is not pushing against China, at least not hard. Why the West is pushing against Russia but not against China is a result of complex internal dynamics of the key players among the western camp. To understand this you will have to understand the lobbies that operate in the DC and their stake in the Middle East. But that will totally sidetrack the topic of this thread.

China is realizing that the outgoing global events have presented an opportunity that need to be seized upon. It is a perfect time for China to show the disenchanted ones that there is an alternative to the US leadership. What is going on between China and Russia should be seen in this light.

We are correct in noticing that it does go beyond the oil deal and it is much bigger than that. The United States' major strength although complemented by its military but never superseded by it is US Dollar. Any challenge to US Dollar as global currency will be detrimental to the US. So there is a special emphasis on bypassing US Dollar among a group of nations that includes more than just China and Russia.

Why is deterioration of US Dollar a concern? It is because US has lost a good deal of manufacturing industries to China and other rising Asian countries. This directly affects the purchasing power parity of the US population. At the moment, the US does not feel the pinch because the world to the great extent still trades in US Dollar and there is only one country that prints the US Dollar. Now, imagine the consequences for the US in absence of a solid purchasing power parity coupled with a global trend to bypass US Dollar as a trading currency.