Russia Sees Its Natural Gas Exports Recovering on Higher Shipments to China

Replacing European customers with China – that sounds like a great deal. There are rumors that gas sales through the Power of Siberia pipeline have never made Russia any money but they are a good political ploy. I would not know of course but knowing China this must be commercially challenging for Russia. Besides, the gas for China does not come from the fields that traditionally served Europe. One look at the distances involved suffices to understand why. Transporting gas by pipeline still has a price. Even in Russia, and there is no magic wand. Maybe there are volumes but that does not matter much. What matters is how much money one makes per unit. Oh, and China as a customer is not what I would long for. 

Russia Sees Its Natural Gas Exports Recovering on Higher Shipments to China - BNN Bloomberg

Russia expects its pipeline gas exports to recover by almost a fifth this year, partially offsetting the loss of most of its European customers through higher shipments to China.

BNN

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