Discussions between PetroChina and its foreign partners in the west-east gas pipeline have been bogged down indefinitely in disagreement, according to a Financial Times interview with Sir Philip Watts, chairman of Royal Dutch/Shell. Shell, ExxonMobil and Gazprom signed a framework agreement with the Chinese company last July but no final deal has been agreed.
However, PetroChina responded by saying that negotiations were underway and pipeline construction was on schedule. "Discussions of the take-or-pay contracts with the users of the pipeline are progressing," the statement added.
The pipeline was due to be ready for a trial run on October 1, China's national day.