Gazprom looking to strengthen gas cooperation with China
Gazprom’s head Alexey Miller held talks with China’s vice president Zhang Gaoli and Wang Dongjin, vice president of CNPC and president of PetroChina, discussing supply or Russian gas to China.
Miller and Gaoli discussed the Russian gas exports to China, especially the progress in the establishment of the eastern route and the prospective project for gas supplies from Russia’s far east.
During his meeting with Dongjin, Miller discussed the project for gas deliveries via the western route and joint efforts regarding gas storage, gas-fired power generation, and the use of natural gas as a vehicle fuel, including through the development of the Europe – Western China international transport route.
“Since early 2017, China’s gas demand has grown significantly; according to the latest data, in January-July alone gas consumption in China added 16 percent compared to the same period of last year,” Miller said.
That growth is mainly caused by the campaign for converting industrial consumers from coal to natural gas in order to fight air pollution in China.
Miller added that China’s imports grew considerably, reaching 51 billion cubic meters for the January-July period, a 20 percent jump.
“Faced with some volatility in pipeline gas supplies from Central Asia LNG procurements exhibited growth, including under spot contracts, of 140 percent,” MIller said.
Gazprom also sees the potential for stronger cooperation with China as the country is looking to increase the share of natural gas in the energy mix to 8-10 percent.