02.05.2019

Gazprom to start gas supplies to China from December 1, 2019

Russian gas major Gazprom plans to start gas supplies to China from December 1, 2019. The deliveries to China and other issues were discussed during a working meeting between Alexey Miller, Chairman of the Board of PJSC Gazprom, and Van Ilin, Chairman of the Board of Directors of CNPC that took place in Beijing, the Russian company said in a statement.

“The preparation of facilities for the start of export from December 1, 2019 of Russian pipeline gas to China via the Power of Siberia gas pipeline is on schedule. The third quarter is scheduled to begin filling the pipeline with natural gas,” the state-run gas giant said in the statement as well.

Turkmenistan started its gas export to China 10 years earlier than Gazprom and, as of today, the country is the largest gas supplier to the Celestial Empire. Gazprom is dominating gas supplies to many European markets where the “field is clean,” that is, no competition in gas supplies, while it also vies to meet the surging Chinese natural gas demand. The situation in China will be somehow different.

Nevertheless, experts believe that Gazprom and Turkmengaz would not feel a kind of uncomfortable due to dealing in the competitive environment. Firstly, because the Chinese gas market is enormous, and everyone will have its share.

Secondly, the gas departments of Turkmenistan and Russia could hold coordinated policy of mutual benefit on a number of issues related to the gas market of the PRC. Moreover, the Turkmen-Russian partnership in the gas sector, taking into account the Soviet period, has more than one-decade experience, and continues still.