Gazprom prices China gas near German levels

Russian energy giant OAO Gazprom (GAZP.MCX) will supply natural gas to China at a price close to Germany’s, Bloomberg reported, citing unidentified Russian officials. The base price for China National Petroleum Corp. is about US$360 per 1,000 cubic meters, near the average US$366 that Gazprom charged last year to Germany, which pays one of the lowest prices in Europe. Keeping parity between Germany and China, which will be Gazprom’s two largest customers after shipments to China start, may reassure investors that Russia didn’t offer excessive discounts to win a deal that had been sought for more than a decade.