AKIPRESS.COM - The price of gas under a new contract between Russian energy giant Gazprom and China National Petroleum Corporation exceeds analysts estimates of $350 per thousand cubic meters, a source acquainted with the terms of the contract told RIA Novosti Wednesday.

“The gas price under the contract is over $350,” the source said, refusing to name the exact figure citing commercial confidentiality.

Gazprom CEO Alexei Miller earlier declined to reveal the contract price for gas for the same reason. He did, however, say that the value of the entire contract was $400 billion, which if calculated against the expected flow amounts, comes to around $350 per thousand cubic meters.

Russian President Vladimir Putin later specified that the price was tied to the market price of oil and oil products and had satisfied both parties.

Russia’s overall investment on delivering gas to China is $55 billion and China’s investment is estimated at around $22 billion according to a contract signed by the two countries in Shanghai, RIA Novosti said Wednesday citing Russian President Vladimir Putin.

Gazprom and CNPC earlier in the day signed a 30-year contract on the sale of Russian gas to China at a volume of 38 billion cubic meters per year with delivery along the eastern route. It was signed on the second day of Russian President Vladimir Putin’s official visit to Shanghai.

The document was under discussion for several years with the gas price that the parties finally agreed on at the last minute being the main stumbling block.