“Gazprom” might start buying gas for China from third parties

natural-gas-863274_640

“Gazprom” started investigating the possibility of purchasing gas from other producers to supply it to China, reported Reuters on Friday, December 11, citing sources in the industry.

The agency reports that the company will need 38 billion cubic meters of gas to supply to Beijing through the eastern route, but due to falling energy prices the profitability of the eastern fields development is undermined. This casts doubts on “Gazprom” to reach the previously declared production volumes.

So, the company has already addressed the Irkutsk Oil Company “to spot” “Gazprom” and insure deliveries to China. They have substantial gas reserves, but they do not develop them due to lack of demand in the region.

“The fundamental agreement is there, but we do not know the prices, and neither does Gazprom,” – said the source.

The interviewee said that a possible scheme of gas supply of the gas from Irkutsk Oil Company to the pipe of “Gazprom” in the amount of up to 7 billion cubic meters per year is currently in discussion.

The press service of “Gazprom” could not confirm the information.

“It is not confirmed. Contacts were only in terms of information, to form the balance of gas in the East,”- said the press secretary Sergei Kupriyanov.

Source: tvrain.ru