Russian govt must discuss zero MET for fields sending gas to China

ST PETERSBURG, May 22 (PRIME) -- The Russian government may introduce preferences on the mineral extraction tax (MET) for producers of gas to be supplied to China only after a thorough discussion, Economic Development Minister Alexei Ulyukayev said Thursday.

On Wednesday, after gas giant Gazprom signed a U.S. $400 billion 30-year contract with China’s CNPC, CEO Alexei Miller said that the deposits producing gas to be supplied to China will have MET preferences.

“This issue must be worked on. I think that the Finance Ministry will have a different point of view,” Ulyukayev said.

The minister has also said that the supplies to China will be profitable.

Sources cited by media said earlier that Beijing will pay $350 for 1,000 billion cubic meters of gas, which is lower than the average price for the E.U.

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