The Russian gas export monopoly Gazprom has hit the wall with new European projects – Nord Stream 2 will be finished at some point in the second half of 2021, the exact route of TurkStream’s second line remains veiled in ambiguity and no other major gas importer voiced their interest in carrying out a new project. Thus, the only remaining prospect for growth lies in Eastern Asia and primarily China. Apart from a tangible gas market saturation in Europe, there are two main premises for a second-phase Gazprom expansion into China: its largely untapped Eastern Siberian gas reserves that would be very costly to move all across Russia onto European markets and the competitiveness of Russian pipeline gas on the Chinese market....MUCH MORE
Gazprom’s current China-bound project, the 38 BCm per year Power of Siberia (PoS) pipeline, started up in December 2019. Surprisingly, the Russian firm halted gas exports via PoS mid-March for a (previously non-indicated) two-week maintenance which turned out to be an elegant way of circumventing the massive demand drop in China. Even with another round of maintenance announced for autumn, Gazprom should be able to meet its export target for 2020 – 5 BCm, rising steadily to 10 BCm per year in 2021 and 15 BCm in 2022. By 2025 Power of Siberia should reach its nominal capacity and it is the next step after that currently exercises the minds of Russian policy makers and gas traders alike....
Previously on Power of Siberia #1 and #2:
January 4, 2020
Methane: "Russia Goes For Global Gas Dominance"
December 4, 2019
China - Russia Already Discussing A Second Siberian Natural Gas Pipeline
Power of Siberia is scheduled to deliver 10% of China's NatGas usage, no word on capacity for #2.
November 19, 2019
"Russia, China Push Ahead With 'Power Of Siberia' Gas Pipeline"
This is a major, major project.
Here's the Gazprom Announcement, October 29:
Power of Siberia pipeline filled up with gas
Big, Big Money: The 'Power of Siberia’ gas pipeline to China could be global game changer
"Russia seeks Chinese support in developing Arctic shipping routes, promising long-term gas supplies in return"
"Behind China and Russia's 'Special Relationship'"
