Low-cost Russian gas goes to China. Change in the world economic equilibrium
Gazprom and China National Petroleum Corporation (CNPC) have signed a new agreement under which the Russian gas giant will deliver greater quantities of natural gas to China via the Far East route, Gazprom said on Friday as China and Russia are strengthening the their energy cooperation. The agreement is long-term and also includes a series of infrastructure projects that will facilitate the completion of these supplies .
"The signing of this document is an important step towards further strengthening the mutually beneficial cooperation between Russia and China in the gas sector," said Gazprom, which expects the total gas supply from Russia to China to reach 48 billion meters. cubes per year, including deliveries via the Power of Siberia main gas line. The agreement provides for a payment in Euros, not dollars, so the European currency will pay for supplies to its largest commercial competitor. A genius to have the "solid currency". In addition, a new gas pipeline is expected to be completed within three years.
Russia is already sending natural gas pipeline to China via the Power of Siberia pipeline, which became operational at the end of 2019. The new facility will complement the existing one.
“This is already a second contract to be signed for Russian gas supplies to China and is indicative of the exceptionally strong mutual trust and partnership between our countries and our companies. Our Chinese CNPC partners have already seen firsthand that Gazprom is a reliable gas supplier, ”said Gazprom CEO Alexey Miller, commenting on the deal announced on Friday.
The Russian Chinese contract is a long-term contract, therefore very welcome to Gazprom which, in this way, ensures a long-term financial flow. However, this type of agreement is rejected by Germany, and therefore by the EU, because it would like to profit on spot contracts, that is, on buying when the supply is abundant and prices low. A greed that, with the green deal, is at the root of the current European energy crisis.
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The article Cheap Russian Gas goes to China. Change in the world economic balance comes from ScenariEconomici.it .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/il-gas-russo-a-basso-costo-va-in-cina-cambiamento-degli-equilibri-economici-mondiali/ on Sat, 05 Feb 2022 09:00:35 +0000.