• 5 minutes Iran Says It Arrested 17 CIA Spies, Some Sentenced To Death
  • 9 minutes Will We Ever See 100$+ OIL?
  • 13 minutes Iran downs US drone. No military response . . Just Destroy their economy. Can Senator Kerry be tried for aiding enemy ?
  • 48 mins Iran Loses $130,000,000 Oil Revenue Every Day They Continue Their Games . . . .Opportunity Lost . . . Will Never Get It Back. . . . . LOL .
  • 14 hours Oil Giant Saudi Arabia Is Set to Start First Wind-Power Plant
  • 25 mins Renewables provided only about 4% of total global energy needs in 2018
  • 8 hours How is E&P of Marginal Oil on the UKCS Similar to the Shale Oil Operations in the US?
  • 1 hour So You Think We’re Reducing Fossil Fuel? — Think Again
  • 1 hour N.Y. Governor Signs Climate Bill
  • 9 hours Berkeley becomes first U.S. city to ban natural gas in new homes
  • 12 hours EIA Reports Are Fraudulent : EIA Is Conspiring With Trump To Keep Oil Prices Low
  • 3 hours U.S. Administration Moves To End Asylum Protections For Central Americans
  • 24 hours First limpet mines . . . . now fly a drone at low altitude directly at U.S. Navy ship. Think Iran wanted it taken out ? Maybe ? YES
  • 23 hours Today in Energy
  • 19 hours Which is a better domain name for OAPEC?
  • 16 hours Shale Oil will it self destruct?
Iran: Our Missile Program Is Not Negotiable

Iran: Our Missile Program Is Not Negotiable

A day after suggestions emerged…

Gazprom to Spend $24.5 Billion on Gas Pipeline to Asia

European demand for gas is expected to fall in the coming years meaning that Russia’s Gazprom must look for new customers if it doesn’t want to see its revenues fall. Asia is the perfect choice; Vladimir Putin has ordered Gazprom to forge close relations with China and Japan in order to take advantage of the fast growing demand that these two nations show for LNG exports.

In order to access this part of the world, Gazprom has committed to spend more than $38 billion to develop its huge East Siberian gas field and build a pipeline to the Pacific port of Vladivostok.

Putin has stated that the huge resources in Eastern Siberia, estimated to be in the region of 1.3 trillion cubic metres of gas, will allow Russia to “create another exporting centre oriented to Asia-Pacific region.”

Related Article: Flaring Increases in the US Due to Low Natural Gas Prices

Alexei Miller, the chief executive of Gazprom, said that his company will invest 770 billion roubles ($24.5 billion) on the 3,200km pipeline from the East Siberian Chayanda natural gas field to the port at Vladivostok. An extra 430 billion roubles ($13.7 billion) would be used to develop the gas field itself.

Gazprom, in conjunction with Japanese energy companies, will build a LNG plant in Vladivostok which is expected to be up and running by 2020 with a capacity of between 10 and 20 million tonnes a year. The natural gas will be converted into LNG here from where it will be shipped down to China and Japan.

By. James Burgess of Oilprice.com



Join the discussion | Back to homepage

Leave a comment
  • Philip on October 30 2012 said:
    This is a curious situation developing. As Europe continues in crisis Russia naturally turns east to the rising economic powers.

    As Russian energy supplies increase and as N.American competition remains doubtful despite overoptimistic reports, Russia could eventually be in a position to dictate terms. Dictate as in 'arm-twist'.

    If China needs the same amount of energy that Europe needs Russia may have a very strong bargaining tool to induce greater 'cooperation/integration' by Europe led by Germany into a Eurasian entity in exchange for greater reliability of supplies, while still keeping China happy.

    Making Europe compete with China for Russian supplies would be an inyeresting power play if all other circumstances favoured that situation. And I'm sure that Putin is enough of a manoeuvre master to work that play eventually.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News
Download on the App Store Get it on Google Play