Russia will supply gas to China 28% cheaper than to European consumers at least until 2027. Bloomberg reports this with reference to the forecast of the Ministry of Economic Development of the Russian Federation, UNN writes.
Details
The forecast points to the financial cost of Moscow's intensive efforts to build energy ties with China amid a standoff with the West over the annexation of the Crimean peninsula and the subsequent full-scale invasion of Ukraine. Even before the invasion, the Russian gas monopoly Gazprom said it saw the Asian country as a future growth market, expecting demand in European markets to decline by the end of this decade.
It is noted that Russian gas will be exported to China in 2024 at a price of $257 per thousand cubic meters. Europe will buy Russian fuel at $320 per thousand cubic meters.
From 2025 to 2027, the price for China will gradually decline, while the price for exports to the west is projected to remain almost unchanged.
Thus, in 2025, Russia will sell gas to China and Europe for $243.7 and $320.1, respectively, in 2026 - $233 and $320, in 2027 - $227.8 and $315.4.
Addendum
"Gazprom still exports pipeline gas to several European countries and Turkey, but last year flows to Europe fell to their lowest level since the early 1970s, at about 45 bcm, according to International Energy Agency (IEA) estimates. According to Gazprom, this is a small fraction of the record 201 billion cubic meters transported westward in 2018.
According to the ministry's baseline scenario, total gas exports from Russia will grow until at least 2026, driven by a rise in gas production after a decline in 2022, the forecast shows.