The redirection of energy carriers from Russia to Asia is “more relevant than ever” amid strained relations between Moscow and Brussels over Russia’s invasion of Ukraine. This was announced by Oleg Aksyutin, deputy chairman of the Gazprom board, in a speech at the 11th International Gas Forum in St. Petersburg, Russia, France Press reported.
According to him, China, where “a doubling of consumption can be expected”, and India, where demand is also increasing, will be the main importers of Russian gas in the next few years.
“The expression ‘to turn’ (to Asia) suggests a hasty decision. However, this is not true: the diversification of our activities in the East has actually been carried out for two decades,” said the representative of Gazprom.
“The heart of the world gas industry from now on is directed to the East,” Aksyutin also said, adding that the European industry is “rapidly losing its competitiveness.”
Earlier in the day, Gazprom said it produced “300.8 billion cubic meters of gas” in the period from January 1 to September 15, down 15.9 percent year-on-year, according to the company’s preliminary data.
Exports to countries outside the Commonwealth of Independent States, of which Russia is a member, decreased by 38.8 percent compared to the same period in 2021, reaching 84.8 billion cubic meters of gas.
In his speech, Aksyutin also touched on the issue of the future of the gas market, saying that in 2023 and 2024, a significant increase in the supply of liquefied natural gas on the global market is not expected. “North American LNG producers can only increase supplies in the long term, and only if prices remain high.”
“Significant volumes of LNG on world markets may not appear until 2025. Europe will have to compete fiercely for these volumes with importers from Asian countries. This will lead to an increase in the shortage of LNG on the world market, and from there – and to an increase in prices,” added Aksyutin, quoted by TASS.
According to him, the main beneficiary of the energy crisis in Europe is the United States, which has managed to increase its supplies of LNG to the continent.
Asked about the effects of the withdrawal of Western equipment suppliers from Russia, the deputy chairman of the board of Gazprom replied that the holding will not experience a shock, because it has been working on replacing these supplies for a long time.
“Since 2016, only Russian pipes have been used in the construction of 100 percent of them (gas pipelines – Belarus) (…) The gas pumping units are also Russian-made.” Everything related to the management system and infrastructure is also of Russian origin, he explained.