Russian, Chinese gas deal is 'massive,' energy minister says

MOSCOW, May 20 (UPI) -- A "massive" contract in the works for Chinese energy has nothing to do with challenges in the European gas sector, Russia's energy minister said Tuesday.

Russian Energy Minister Alexander Novak said the Kremlin aims to sign sweeping oil and natural gas contracts with China. In an interview the Russia-24 TV channel, he said bilateral economic initiatives with Beijing are part of a broad agenda.

"That is why we sign these massive contracts to supply gas, oil, construct infrastructure pipelines -- they lay the foundation not for the present day, and neither it is associated with the situation around the European partners today," he said. "This is due to the development of relations with Asia-Pacific countries in general, with such key partners as China."

Russian President Vladimir Putin is putting the final touches on a contract with China that envisions natural gas deliveries and associated pipeline infrastructure.

Novak said the deal between Russian gas company Gazprom and the China National Petroleum Corp. lays out the terms for a 30-year natural gas relationship.

"The economic development of the Asia-Pacific region as a whole is evolving, it shows strong growth, and in the future energy will be consumed there at a higher rate," he said.

Gazprom supplies about 20 percent of the gas needs for Europe. The company says mounting debt in Ukraine threatens those supplies as the bulk of the Russian gas headed west runs through the Soviet-era pipeline network in Ukraine.