CHINA’S NATURAL GAS MARKET AND RUSSIAN EXPORT OUTLOOK

Abstract

The article analyzes the state of the Chinese gas market and factors in the long-term dynamics of gas demand in China. The author has attempted to assess the expansion of Russia’s presence in the Chinese gas market and provide intermediate recommendations on using the potential for developing energy cooperation between China and Russia. It must be taken into account that the northeastern provinces of China, located near the border with our country, will be supplied with Russian gas thanks to the Power of Siberia gas pipeline. However, the insufficient development of the relevant infrastructure in China – pipeline capacities, gas storage facilities, distribution networks – will not allow Russia to significantly increase exports through this gas pipeline. These limiting factors apply to an even greater extent to the Power of Siberia-2 gas pipeline project. According to the author, the most promising way to increase Russian gas exports to China may be to organize supplies of Russian liquefied natural gas to the coastal regions of China, where a steady increase in gas demand is predicted.