Alexey Miller's column
Alexey Miller and Zhang Gaoli discuss gas supplies to China from Russia’s Far East
“Since early 2017, China's gas demand has grown significantly; according to the latest data, in January-July alone gas consumption in China added 16 per cent compared to the same period of last year. That growth is mainly caused by the campaign for converting industrial consumers from coal to natural gas in order to fight air pollution in China. Seeking to meet the demand, China increases its gas imports considerably. In January-July, gas imports totaled 51 billion cubic meters, an increase of 20 per cent, or 9 billion cubic meters, in the span of six months. The share of imports in the country's gas balance is rising; it is currently at 38 per cent. Faced with some volatility in pipeline gas supplies from Central Asia – certain countries did not deliver in January-April – LNG procurements exhibited growth, including under spot contracts, of 140 per cent.
China's stated aims for gas industry development up to 2020 (with the share of gas in the energy mix reaching 8–10 per cent and UGS capacity doubling), coupled with CNPC revising upward its forecasts for gas consumption up to 2030 (620 billion cubic meters compared to last year's forecast of 510 billion), create great potential for deepening cooperation with Gazprom.”
Speech by Alexey Miller at Eastern Economic Forum 2017
The eastern dimension is a focus area for Gazprom. It has been for a long time. In 2017, we take stock of our ten-year efforts under the Eastern Gas Program. The Program was adopted in late 2007 and we started implementing it in 2008.
The Eastern Gas Program aims to create a unified gas transmission, production and processing system in the east of Russia, to provide reliable gas supplies to Russian consumers, be they private, municipal or industrial, and, of course, to develop our export potential here in Russia’s Far East.
