Russia, China sign new gas accord

Russia and China added to their already hefty $400 billion gas deal with an additional pact that will lessen Russia’s dependence on Europe as a consumer. 

Russian President Vladimir Putin and Chinese President Xi Jinping on Monday signed the new gas agreement, which will supply nearly a fifth of the natural gas China needs by the end of the decade, Bloomberg reports.

{mosads}Under the new deal, Russian oil giant Gazprom is working to supply roughly 30 billion cubic meters of gas annually from West Siberia to China over 30 years. Also, another Russian producer, Rosneft, has agreed to sell a 10 percent stake in a Siberian unit to the China National Petroleum Corp.
 
With new exports to China, the possibility of a glut in the global energy markets may increase during the next decade. China is expected to replace Germany as Russia’s largest gas market.