Russian state gas company Gazprom has signed an agreement with China National Petroleum Corp to build two pipelines that will supply China with 60-80 billion cubic meters of gas a year.

The first supplies from a pipeline from fields in western Siberia could flow over the border in five years, Gazprom CEO Alexei Miller said. Gas from the second pipeline would come from Sakhalin and possibly from Kovykta in east Siberia, but no timeframe was given.

Financial details of the plan have yet to be revealed, although prices for the gas sold to China would be pegged to crude oil and oil product prices as in Europe, according to Alexei Miller. We are talking about 30 to 40 bcm a year by each route. Western Siberia will be a quicker project to realize, he told reporters.