Alexander Medvedev, Deputy Chairman of the Gazprom Management Committee said that despite certain economic crisis phenomena, Gazprom owns sufficient resources to advance its East-oriented activities.
The price adjustments in the gas markets caused by a drop in oil quotations hadn’t affected the dominant position of Asia-Pacific as a driver of growing global gas consumption.
Speaking at a conference, Medvedev said that following the expert reviews, by 2025 the region’s demand for imported gas might grow 1.5 times from present 280 billion cubic meters to over 400 billion cubic meters a year.
Gazprom is running the project for gas supply to China via the eastern route. The talks are well underway on exporting Russian gas to China via the western route. The possibility is being considered for supplying gas to China from Russia’s Far East.
The company’s pipeline projects are backed up by LNG business, the main market for which is Asia-Pacific. During the last ten years Gazprom sold 60 per cent of LNG products there. The major customers are Japan and South Korea. Great attention is given to expanding the sales market and the scope of work at niche and new regional markets in Asia, Latin America and the Middle East.
Currently the company’s long-term portfolio is mostly represented by supplies from Sakhalin II, Russia’s first LNG export plant for which the project operator is getting ready to develop the project documentation for the third process train of the plant.
In order to increase liquidity, Gazprom is looking to expand its LNG portfolio due to new long- mid- and short-term deals as well as spot gas supplies. In the near future the company’s portfolio will be supplemented by receipts from the Yamal LNG project. Contracts for LNG purchase were signed with Nigeria and Malaysia. As a result, in the last two years Gazprom doubled its LNG portfolio. The bulk of these volumes will be delivered to Asia-Pacific.
Medvedev concluded under the current market conditions the company will strengthen its presence in the Asia-Pacific market.