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Russia’s biggest natural gas producer Gazprom and China’s state oil and gas giant China National Petroleum Corporation (CNPC) have signed a long-awaited agreement for  natural gas supply.

The agreement — signed during a meeting of Presidents Vladimir Putin and Xi Jinping at the G20 summit in St. Petersburg — contains basic terms for gas export from Russia to China.

It doesn’t specify the price.

The terms “define the volumes, start of deliveries, payments, ‘take-or-pay’ amendment” and other issues, Reuters said, citing a statement from Gazprom.

A definitive agreement is expected by the end of this year, according to Gazprom Chief Executive Alexei Miller, and gas deliveries are expected to start by 2018.

The agreement culminates decade-long negotiations on gas supply between the two neighbors.

The gas imported from Russia will be priced a little higher than that originating from central Asia, now 3 yuan (US$0.49) per cubic meter, according to energy economist Lin Boqiang from China’s Xiamen University.

Meanwhile, CNPC has signed a final agreement with Russia’s second largest natural gas producer Novatek on the purchase of a 20% share in Yamal LNG, a subsidiary of Novatek.

Source: Reuters, Huanqiu (环球网), The Moscow Times