Russia’s Gas Exports to China
Russia is looking to increase its gas exports to China, with the aim of selling the fuel at half the price it charges in Europe. The move is part of a broader effort by the country to diversify its energy exports and strengthen its ties with the world’s second-largest economy.
Russia’s Gas Industry
Russia is the world’s largest producer of natural gas, accounting for about a quarter of global production. It is also the world’s largest exporter of the fuel, with Europe being its biggest customer. In recent years, Russia has been looking to diversify its gas exports, with China being a key target.
Russia’s Gas Deals with China
Russia has already signed several gas deals with China. In 2014, the two countries signed a 30-year, $400 billion gas supply agreement. Under the deal, Russia agreed to supply China with 38 billion cubic meters of gas per year. In 2018, the two countries signed a new agreement, under which Russia will supply China with an additional 5 billion cubic meters of gas per year.
Russia’s Price Advantage
Russia is looking to take advantage of its lower production costs to offer gas to China at a lower price than it charges in Europe. According to Russian Energy Minister Alexander Novak, the country is aiming to sell gas to China at half the price it charges in Europe.
Russia’s Pipeline Projects
In order to facilitate the increased gas exports to China, Russia is investing in several pipeline projects. The most significant of these is the Power of Siberia pipeline, which is expected to be completed by the end of 2023. The pipeline will have a capacity of 38 billion cubic meters of gas per year and will run from Russia’s eastern border to China’s northern border.
Russia’s Gas Exports to Europe
Despite the increased focus on China, Russia is still looking to maintain its gas exports to Europe. The country is currently in negotiations with several European countries, including Germany, France, and the Netherlands, to secure long-term gas supply contracts.
Russia’s Gas Market
Russia is looking to strengthen its position in the global gas market. The country is aiming to increase its share of the global gas market from 25 percent to 30 percent by 2030. It is also looking to increase its share of the Chinese gas market from 10 percent to 20 percent by the same year.
Russia’s Growing Influence
Russia’s increased focus on China is part of a broader effort to increase its influence in the region. The country is looking to strengthen its ties with China, as well as other countries in the region, in order to gain access to new markets and resources.
Conclusion
Russia is looking to increase its gas exports to China, with the aim of selling the fuel at half the price it charges in Europe. The move is part of a broader effort by the country to diversify its energy exports and strengthen its ties with the world’s second-largest economy. Russia is also investing in several pipeline projects to facilitate the increased gas exports to China, while still maintaining its gas exports to Europe. The country is looking to strengthen its position in the global gas market and increase its influence in the region.