• 4 minutes Oil Price Editorial: Beware Of Saudi Oil Tanker Sabotage Stories
  • 7 minutes Mueller Report Brings Into Focus Obama's Attempted Coup Against Trump
  • 11 minutes Magic of Shale: EXPORTS!! Crude Exporters Navigate Gulf Coast Terminal Constraints
  • 14 minutes Wonders of Shale- Gas,bringing investments and jobs to the US
  • 46 mins Evil Awakens: Fascist Symbols And Rhetoric On Rise In Italian EU Vote
  • 51 mins Theresa May to Step Down
  • 4 hours Old - New Kim: Nuclear Negotiations With U. S. Will Never Resume Unless Washington Changes Its Position
  • 13 mins IMO 2020 could create fierce competition for scarce water resources
  • 34 mins Is $60/Bbl WTI still considered a break even for Shale Oil
  • 3 hours India After Elections: Economy And Hindu Are The First Modi’s Challenges
  • 19 mins IMO2020 To scrub or not to scrub
  • 5 hours Total nonsense in climate debate
  • 2 hours Apple Boycott in China
  • 6 mins Devastating Sanctions: Iran and Venezuela hurting
  • 11 hours Level-Headed Analysis of the Future of U.S. Shale Oil Industry
  • 13 hours Apartheid Is Still There: Post-apartheid South Africa Is World’s Most Unequal Country
  • 227 days Epic Fail as Solar Crashes and Wind Refuses to Blow
  • 2 hours Compensation For A Trade War: Argentina’s Financial Crisis Creates An Opportunity For China
The Biggest Losers Of The Trade War

The Biggest Losers Of The Trade War

The U.S.-China trade war entered…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

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