Oil Report

China, Russia still divided on pipeline gas price

BEIJING, Nov 18 (Reuters) - China and Russia have still not reached a pricing agreement for the gas that Russia will supply China along a planned pipeline, a Chinese official said on Thursday.

“With regards to the pricing negotiation, the two sides have made efforts. We are still largely divided on pricing. The difference in the pricing between the two sides is $100 per 1,000 cubic metres,” said Gu Jun, deputy director general of the National Energy Administration.

“We need to demonstrate sincerity on both sides to see whether we can push forward with the negotiations,” she said at a Foreign Ministry briefing ahead of a visit to Russia next week by Premier Wen Jiabao, Vice Premier Wang Qishan and other officials.

“The pricing negotiation is an important part of vice-premier Wang Qishan’s trip and we hope to narrow the divide then.”

Reporting by Sui-Lee Wee; Editing by Ken Wills