Russia to build new gas pipeline to China

YUZHNO SAKHALINSK, Russia, Sept 29 (Reuters) - Russia's state-owned energy giant, Gazprom GAZP.MM, will build a new gas pipeline to China through its south Siberian Altai region, the company's export chief Alexander Medvedev said on Wednesday.

“The entry point of the gas into China will be through Altai, and construction will begin in 2011,” said Medvedev during an oil and gas conference on Russia’s far east island of Sakhalin.

Gazprom agreed earlier this week to supply 30 billion cubic meters of gas annually to China over 30 years, beginning in 2015. [ID:nTOE68Q03P]

Medvedev said decisions on investment volumes for the pipeline will be finalized in 2011, when the two countries must also agree on a price for the gas supplies.

“Our respective price positions have moved closer by $60 since the last time we talked,” said Medvedev. (Editing by Michael Urquhart)