- We know that the Chinese market is the most dynamic market in the world and in the next 20 years," says Moscow.
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| Russia begins designing a new gas pipeline to China after increasing supply by 60% |
Russia begins designing a new gas pipeline to China after increasing supply by 60%
Russia has begun designing a new gas pipeline to China in the Far East after Gazprom signed an agreement in February with the China National Petroleum Corporation (CNPC) to supply 10 billion cubic meters of Russian gas a year, the CEO announced of the state consortium, Alexei Miller. "We know that the Chinese market is the most dynamic market in the world and in the next 20 years the increase in gas consumption in China will be 40% of the increase in global gas consumption in the world," he said at a conference dedicated to the Day of Workers in the Oil and Gas Industry.
"That's why we signed another gas supply contract to China. This is the 'Far East' route. We are already starting to develop the design and estimating documentation for this project," Miller said.
Once the pipeline reaches its maximum capacity, the volume of Russian gas supply to China will increase by 10 billion cubic meters per year over 25 years, in addition to the 38 billion cubic meters per year that Gazprom will send to the Asian giant through the "Force of Siberia" gas pipeline for three decades.
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The gas company is also working on increasing the capacity of the "Force of Siberia" gas pipeline, whose first line was launched in December 2019 from the Chayanda field in the Yakutia region, Miller said.
"Before the end of the year, we will be celebrating a very important, significant event. This is the beginning of the flow of gas from the Kovykta field (Irkutsk) to the 'Force of Siberia' gas pipeline. We are already finishing the linear part of Kovykta-Chayanda", he claimed. Miller also referred to the "Soyuz Vostok" (Eastern Union) project, a gas pipeline through Mongolia that will become the continuation of "Force Siberia-2", which Gazprom began work on in 2020.
The CEO of Gazprom stressed that Russia is constantly increasing supplies through the "Siberian Force" to China, a country with which it has registered several daily gas delivery records so far this year, above the contractual obligations of the Russian state company, he assured. Miller stressed that in the first eight months of the year, the volume of gas supply to the Chinese market increased by 60% compared to the same period in 2021.
All this while global demand has been reduced by 40,000 million cubic meters between January and August, of which almost 30,000 million were attributed by the head of Gazprom to the European Union. Despite reduced demand from Europe, which is trying to gain independence from Russia and suffers constant gas cuts by Gazprom, the gas company believes that its financial results this year will be "significantly better than in 2021", according to Miller.
"We are seeing, in the literal sense of the word, a 'price rebound', a rise in commercial gas platforms. "At Gazprom, we have made price forecasts for next winter. According to a conservative estimate, if current market trends continue, the price in autumn-winter may exceed 4,000 dollars per thousand cubic meters," he predicted.
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