Major Russian-Chinese gas deal hits obstacle

A 10-year-old plan on gas supply delivery between Russia and China has come to a halt after the two country's presidents could not reach a consensus yesterday, in Shanghai.

The giant gas deal, estimated at 300 billion euros, hit a new obstacle because Russia is holding tight to the price it delivers gas for in Europe while China demands a new price, more appropriate for their region.

Gazprom could deliver a quarter of China's needed gas through a 16 billion euros pipeline.

However, the pressure to finalize the deal increases for Russia as new gas supplies are made available for China.

Australia is on the verge of becoming a liquefied natural gas producer and Iran's president, who is also present in China at the moment, is trying to shake hands with the Chinese president over another deal.