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Image courtesy of Gazprom.

Russia and China are moving closer to inking a deal that would clear the way for Russian gas to be delivered to China through the Power of Siberia pipeline.

Negotiations were held at the nineteenth regular meeting between the Chinese and Russian prime minister Monday.

In May, Russia’s Rosneft and China’s CNPC signed a 30 year contract for gas delivery along the eastern route.

Natural gas produced at Russia’s Irkutsk and Yakutia gas production centers would be delivered to China through the Power of Siberia gas trunkline.

If both sides agree on the terms the deal could be worth about $400 billion and deliver 38 billion cubic meters of gas to China.

Construction on the Power of Siberia launched on September 1 and is expected to come onstream in 2017.

Agencies from both countries have been considering an inter-governmental energy cooperation agreement for the past few months.

Gazprom said an agreement is currently in its final draft stage and could be signed in the near future.

The two countries also discussed a project to export gas through the western route in Russia that would transport gas produced in West Siberian fields to China.

Gazprom also said construction of its Altai pipeline in West Siberia is ready to start up. The company said it is considering adding two additional pipeline strings that would boost potential output to 100 billion cubic meters of gas per year.