OAO Gazprom climbed the most in a week as Russia’s natural-gas export monopoly signed a supply deal with China National Petroleum Corp.
The shares increased as much as 1.6 percent before trading up 1.1 percent at 141.64 rubles by 3:43 p.m. in Moscow, the most since March 15 on a closing basis. The amount of shares traded was 15 million, equivalent to about 41 percent of the three-month average.
Gazprom plans to build a link to China with a capacity of 38 billion cubic meters of natural gas that it would supply annually for 30 years starting from 2018, Gazprom’s Chief Executive Officer Alexei Miller told reporters on March 22 after stock-market trading closed. The two companies signed an agreement on cooperation during China President Xi Jinping’s visit to Moscow on March 22, according to a press release.
“The news is positive,” VTB Capital analysts said in an e-mailed note. “A new customer base in China might help the monopoly to improve its financials in the longer term.”
Gazprom has been negotiating a deal to transport as much as 68 billion cubic meters of gas a year to China, the world’s fastest growing major economy, since the two companies signed a cooperation deal in 2004. The talks repeatedly stalled because of disagreements on prices.