• 3 minutes 2nd Annual Great Oil Price Prediction Challenge of 2019
  • 6 minutes "Leaked" request by some Democrats that they were asking Nancy to coordinate censure instead of impeachment.
  • 11 minutes Trump's China Strategy: Death By a Thousand Paper Cuts
  • 14 minutes Democrats through impeachment process helped Trump go out of China deal conundrum. Now Trump can safely postpone deal till after November 2020 elections
  • 4 hours Shale Oil Fiasco
  • 45 mins Everything you think you know about economics is WRONG!
  • 5 hours READ: New Record Conoco Eagleford Vintage 5 wells, their 5th generation Test Wells . . Shale going bust . . . LAUGHABLE
  • 3 hours Judiciary impeachment: Congressman says Sean Misko, Abigail Grace and unnamed 3rd (Ciaramella) need to testify.
  • 22 hours Quotes from the Widowmaker
  • 4 hours Offshore is changing
  • 2 days Aramco to Drop $133B on Drilling over Decade
  • 17 hours You long it you short it it is Here for a long time since Trump signed it
  • 32 mins Tesla Launches Faster Third Generation Supercharger
  • 19 hours Wonders of US Shale: US Shale Benefits: The U.S. leads global petroleum and natural gas production with record growth in 2018
  • 24 hours Global Debt Worries. How Will This End?
  • 23 hours IEA predicts oil demand will grow annually at 1 million barrels a day for the next 5 years
The Next Major Middle East Oil IPO

The Next Major Middle East Oil IPO

Oman Oil Company could become…

Why Are Oil Markets Suddenly So Volatile?

Why Are Oil Markets Suddenly So Volatile?

Volatility in oil markets has…

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
Download on the App Store Get it on Google Play