Russia set to become China’s largest gas supplier

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Russia set to become China’s largest gas supplier
Russia set to become China’s largest gas supplier (Provided by Financial World)

Russia’s state-backed energy mogul Gazprom would likely to become the largest gas supplier of China in a near-term, the world’s second-largest economy which is projected to surpass the United States by 2025 in terms of growth - four years earlier than a previous forecast - Gazprom strategy department deputy director Kirill Polous said in a statement earlier this week.

Australia and the United States had been the largest exporter of natgas alongside a number of crucial commodities for China since early 2000s, while as of 2021, Russia stood at sixth in terms of natgas exports to China, illustrating a substantial scale of polarization in global economic landscape.

Speaking at a discussion in St Petersburg International Gas Forum, Citing that deliveries of Russian gas into Chinese market are soaring at a breakneck pace, Polous said, “Taking into account the previously signed contract for the supply of gas under the Power of Siberia project, the total contracted volumes amount to 48 billion cubic meters [including deliveries from Russia’s Far East].

With a high degree of probability, after reaching the specified volume of exports, Russia may become the largest gas supplier to China. At the same time, it is also important that while developing cooperation in the gas industry, Russia and China do not increase mutual dependence to critical levels”.

Aside from that, Gazprom’s Polous also stated that there had been a swift overhaul in payments for Russ gas involving a mass-scale de-dollarization adding “During the Eastern Economic Forum, an agreement was reached to transfer payment for gas supplies via the Power of Siberia gas pipeline into roubles and yuan”.

Russia set to become China’s largest gas supplier

Besides, Gazprom’s Polous stressed that a mutual accord had been reached regarding gas payments in Yuan and Rouble saying, “We are talking about stable pricing mechanisms and the absence of regulatory barriers for the implementation of gas projects”.

If truth is to be spoken, Gazprom has reportedly been heightening up gas exports into China through its Siberian cross-border mega pipeline, commonly called as the eastern route which is capable of transferring 61 billion cubic meters of gas every year.

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