China to become Russia's biggest gas consumer if western route developed

[Mao1949]

China could replace Germany as Russia’s biggest gas consumer, if Moscow and Beijing agree to add a route from Russia’s Western Siberia to the one already agreed under a $400 billion contract, President Putin said at a meeting with media in St. Petersburg.

Germany now consumes 40 billion cubic meters of Russian gas annually, and China will start buying even more if the western route is agreed on, Putin said.

“The next step [in Russia-China gas cooperation] is a possibility to make a similar deal on a so-called western route,” President said commenting on a Russia-China megadeal signed Wednesday in Shanghai.

The president added the route connecting Russia’s western Siberia and China could be developed even faster than the eastern.

Though so far there are no concrete agreements on the western route, Putin said it would also be cheaper than the eastern one.

The key issue is connected with pricing and the second project should be easier in this respect as the main mechanism would be already tested by then, he explained.

Aleksey Miller, head of Russia’s gas giant Gazprom has insisted that the gas price in a $400 billion deal was a “commercial secret,” while Aleksandr Medvedev, CEO of Gazprom’s export arm, said it would be well above $350 per 1,000 cubic meters.

The eastern route connects Russia’s Kovykta and Chaynda fields with China, where recoverable resources are estimated at about 3 trillion cubic metres. Putin, however, says they are underestimated and have even more, enough to last for the next 50 years.

 

[Chinese-Dragon]

We have the largest energy consumption on Earth, and we are still a developing country.

Imagine when we become a developed country of 1.3 billion people. We will consume more than any other country in the history of the world. And Russia will be our most reliable supplier.

Even our thousand-year Shale gas reserves might not be enough, we will still need pipelines from Russia for the next half-century at the very least.

 

[Mao1949]

We have the largest energy consumption on Earth, and we are still a developing country.

Imagine when we become a developed country of 1.3 billion people. We will consume more than any other country in the history of the world. And Russia will be our most reliable supplier.

Even our thousand-year Shale gas reserves might not be enough, we will still need pipelines from Russia for the next half-century at the very least.

The $400 billion deal was for only the Western pipelines supplying 38 bcm per year from 2019. The Eastern pipelines could pump even more gas. The total gas supplied by Russia to China from both pipelines will easily surpass the amount of gas Russia is supplying to Germany (40 bcm per year). Even with the western pipeline alone, China will be buying just as much gas as Germany.

 

[Mao1949]

 

[senheiser]

We have the largest energy consumption on Earth, and we are still a developing country.

Imagine when we become a developed country of 1.3 billion people. We will consume more than any other country in the history of the world. And Russia will be our most reliable supplier.

Even our thousand-year Shale gas reserves might not be enough, we will still need pipelines from Russia for the next half-century at the very least.

there is actually a lot of gas in Russia with you add shale and arctic gas which there is no demand yet