Russia expert: China is one of the most attractive markets for Gazprom

2022-05-05 0 By

China is one of the most promising markets for expanding natural gas exports and is committed to signing long-term contracts, making it very attractive to Gazprom, Alexander Amirajyan, head of economic research in the field of fuel energy complex at the Center for Strategic Studies of Russia, told the media.In the next 20 to 30 years, China’s natural gas consumption is expected to increase by 0.5 to 100 percent, which means an additional 200 to 300 billion cubic meters of gas per year, Amirajian said.But China’s domestic production growth is limited, so imports will make up most of the shortfall.Gazprom recently signed a long-term contract with petrochina to export natural gas from the Far East to China.The contract is for 25 years and will supply China with 10 billion cubic meters of gas per year.Amirajian believes the contract should be seen as a complement to the Russia-China gas supply contract for the Power of Siberia pipeline.In other words, the pipeline’s export capacity will increase from 38 billion cubic meters to 48 billion cubic meters per year.In addition, the “Power of Siberia 2″ project is being studied to build a natural gas pipeline to China via Mongolia with an annual capacity of 50 billion cubic meters.If the planned projects are implemented, Russia could supply 100 billion cubic meters of gas through pipelines to China alone by the early 2030s, Amirajian said.”The Chinese market has the capacity to absorb this volume as it plans to achieve major consumption growth over the next 10-15 years,” he said.