Monday, February 28, 2022

Gazprom Signs A Massive Natural Gas Deal With China

From BNN Bloomberg, February 28:

Gazprom Paves Way to New China Gas Deal as Sanctions Hit Russia

Gazprom PJSC took a new step toward potentially its biggest-ever natural gas supply deal with China as nations around the world sever economic and political ties with Russia over the country’s invasion of Ukraine. 

The Russian gas giant signed a contract to design the Soyuz Vostok pipeline across Mongolia toward China, Gazprom said in a statement. If Russia reaches a new supply agreement with China, Soyuz Vostok will carry as much as 50 billion cubic meters of natural gas per year to the Asian nation. 

A new supply deal with China would also enable Gazprom to build an interconnector between its west- and eastbound pipeline systems, effectively allowing Russia to redirect gas toward China from fields that now only feed Europe. That could ease Gazprom’s reliance on the European continent, currently the single-largest buyer of Russian gas....

....MUCH MORE 

The just opened Power of Sibera I has a capacity of 38 billion cubic meters and China doesn't seem to be turning away any LNG being shipped from the Russian Arctic.

By comparison the pipes into Europe have a total capacity of around 200 bcm per annum, via Statista:

https://cdn.statcdn.com/Infographic/images/normal/26769.jpeg