Russia wants to further push gas exports to China, but
Russian gas giant Gazprom is working with China to further increase Russian pipeline deliveries to the Chinese market and is discussing accelerating the start of supplies via the Far East route, said Xie Jun, vice president of China National Petroleum Corporation (CNPC), in a press conference. gas forum in Russia on Wednesday.
“Our company and PJSC Gazprom are trying to build a closer energy partnership and are systematically accelerating the implementation of the gas supply project along the Far Eastern route,” Xie Jun said, quoted by the Russian News Agency Interfax .
Currently, Russia supplies gas via pipeline to China through the Power of Siberia pipeline.
An agreement on Power of Siberia 2 has not yet been reached due to some sticking points, including the prices at which Gazprom will deliver the gas. The Power of Siberia 2 pipeline is designed to transport gas from Russia's western Siberian Altai region to northeastern China via Mongolia.
The problem is evident: as long as Russia had two or more export markets, there was competition among buyers, but when the Western market was closed or reduced, then China became a single, large, buyer, so the prices are not set so much by the seller, but by the buyer. Although Russia has increased liquefied gas exports, this has not yet been sufficient.
Russia could start construction of the Mongolian section of the main gas pipeline to China as early as the first quarter of 2024, according to Russian Deputy Prime Minister Viktoria Abramchenko.
The project for the Mongolian section of Power of Siberia 2, Soyuz Vostok, is expected to be approved in the first quarter of 2024 and construction could begin then, Deputy Prime Minister Abramchenko said last week, as quoted by Russian news agency TASS .
After the break with Europe, China has become a priority destination for the Russian state company Gazprom.
Power of Siberia was one of the largest projects recently completed by Gazprom and the first pipeline for Russian gas to China.
Earlier this year, Gazprom CEO Alexey Miller said Russia could soon supply China with volumes of gas comparable to the volumes Moscow was sending to Western Europe before it invaded Ukraine.
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The article Russia wants to further push gas exports to China, but it comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/la-russia-vuole-spingere-ulteriormente-lexport-di-gas-verso-la-cina-ma/ on Wed, 01 Nov 2023 17:12:17 +0000.