The two parties are trying to negotiate the terms and conditions for the agreement, especially the price for delivery. Gazprom has plans to initiate the construction of two gas pipelines if the deal gets the green light.

Alexander Medvedev, deputy chairman of Gazprom, said: We are in a rather advanced stage of talks…Hope to achieve the agreement soon, as cited by Reuters.

So far, pricing issues have prevented the completion of an agreement. According to Reuters, China is demanding gas at Russian domestic prices, while Gazprom wants to charge prices comparable to those paid for Russian gas imports by Europe.

Gazprom has stated that it could potentially provide China with 68 billion cubic meters of gas per annum once the infrastructure is in place, Reuters said.