Gazprom Bid for Second China Deal Seen Challenged by Crude Slump
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Russia’s $400 billion gas-supply deal with China in 2014 took almost a decade to pull off. While state-run exporter OAO Gazprom pushes to cement ties, lackluster energy markets suggest a second agreement may be slow to follow.
Crude oil, the main component of Russia’s gas-pricing formula, has tumbled almost 40 percent in six months, weakening Gazprom’s bargaining power. The slump has reduced the funds available for a second Russian pipeline to China.