Gas deal with Russia offers longer-term security

Other Asian energy producers can benefit from selling resources to China. Meanwhile, a secure energy supply in China will contribute to the stability of the whole Asian region, he said.

In addition to the natural gas supply deal, CNPC signed a contract with Novatek OAO for LNG purchases. The Chinese company also signed an agreement with Russia's Rosneft OAO for crude oil supplies for their joint venture refinery in northern China's city of Tianjin.

The other State-owned energy giant, China Petrochemical Corp (known as Sinopec), entered into a strategic cooperation agreement with Russia's OAO Sibur Holding, a gas processing and petrochemicals company.

As part of the cooperation, the parties will discuss the potential expansion of trading operations and look into collaboration opportunities in gas processing and petrochemical projects.

Sinopec said this partnership will help diversify and secure the company's long-term sourcing of petrochemical products and expand its overseas footprint.

Sibur said the deal will help it maximize the efficiency of new large-scale projects and expand its competencies and distribution markets.

As part of the pact, the companies will establish a joint venture for a butadiene nitrile rubber plant at the Shanghai Chemical Industry Park. Sinopec's share in the joint venture will be 74.9 percent and Sibur's will be 25.1 percent.

The parties also signed a technology licensing agreement for the use of Sibur's butadiene nitrile rubber production technology at the new facility. Sibur's specialists will participate in establishing the new facility's production and commercial operations.

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