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Gazprom could prosper from China visit

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There is some talk in the market about China signing a natural gas import deal with Russia ahead of a state visit is giving Gazprom shares a bump. Everyone has figured for awhile now that Gazprom ( OGZPY , quote ) would need start selling some of its prodigious gas output to China in the near future. But even though it is news that the market has been expecting -- and technically is still expecting -- for some time now, it is driving the stock up 5% today: The time frame is now getting tight. Some Beijing officials have promised a "major agreement on natural gas" before President Hu Jintao visits Moscow. However, Hu will be in Russia next Wednesday, so that does not leave a lot of time. At stake is around 68 billion cubic meters -- 2.4 trillion cubic feet -- of gas moving toward China instead of Europe every year. This would meet most (about 75%) of China's increasingly gas-oriented energy needs without forcing it to continue aggressively hunting for new and expensive sources of gas to develop and process on its own. Significantly, OGZPY shares are up a lot today. More western-focused benchmarks of gas prices like the ETF UNG ( quote ) are sagging along with oil prices:

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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