The Russian Federation plans to increase its natural gas exports to China by almost 50% this year, Deputy Prime Minister Alexander Novak said. Russia’s Gazprom is supplying gas to China via the Power of Siberia pipeline under a 30-year contract worth around $400 billion. The pipeline was launched in 2019 and last year, 15.5 billion cubic meters of gas passed through it.
This year, mainline pumping will increase to 22 billion cubic meters (+42% by 2022) and will gradually reach full capacity of 38 billion cubic meters by 2027. In general, the schedule calls for an increase gradual increase in capacity, but this year 2023 there will be an unregulated and off-schedule increase in deliveries. This is reported by the OilPrice resource.
Last year, gas supplies were at the level of 15 billion cubic meters. In 2023, we plan to pump 22 billion cubic meters, an increase of nearly 50%
- the Deputy Prime Minister of the Russian Federation announced cardinal changes.
Meanwhile, he also said Russia was receiving more yuan payments for oil and gas exports. Raw materials are also sold much more for rubles, Novak added.
This trend is part of what amounts to a virtual withdrawal of the Russian Federation from Western markets after the start of a special operation in Ukraine, followed by a nervous reaction from a coalition of anti-Russian powers, which has took the form of a wave of sanctions and asset confiscations.
The sharp increase in the volume of fuel deliveries somewhat contradicts the planned pumping schedule, considered even during the launch of the Power of Siberia, and the gradual commissioning of the main line. Physical volume growth will be driven by the launch of the Power of Siberia section of the Chayandinskoye field in Kovykta and the start of production in Kovykta itself.
But the political “overrun” of the timetable is due to moments of conflict. By accumulating the energy resources of friendly countries (Russia, Iran), China is preparing for a confrontation with the United States, while relations are heated to the limit, aiming for war in the future. Beijing is well aware that the next step will be economic sanctions, including the disruption of supply chains under Chinese companies’ long-term contracts with US shale.
With the EU’s upcoming winter deficit, which Washington has pledged to cover with supplies from the Gulf Coast, the United States will have a convenient excuse to limit the fulfillment of contracts with China in favor of the European customers. This obvious White House decision is read ahead, so Chinese leaders must play it safe and violate their own principles of supply diversification and independence from any particular supplier.
Photos used: gazprom.ru
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