MOSCOW, June 7 (UPI) -- Russian gas giant Gazprom has agreed to the principle terms for a long-term natural gas contract with China, executives at the gas monopoly said.
Stanislav Tsygankov, the director of foreign activities at Gazprom, said both sides agreed to the foundations for a pricing formula for natural gas, Russia's state-owned news agency RIA Novosti reports.
"Unfortunately, the Chinese side does not have experience (with) concluding long-term gas delivery contracts," he added.
Gazprom, he said, was in talks with China National Petroleum Corp. as part of a broader intergovernmental agreement.
Alexander Medvedev, the deputy director of Gazprom, said earlier this year that natural gas deliveries to China could start by 2015.
Moscow said it expected to finalize the gas deal with Beijing by September.
Both sides in October signed a framework agreement on natural gas. They also agreed to move forward with gas supply contracts in 2010.