Gazprom Says Gas Exports to China Reach New High as Demand Soars

(Bloomberg) -- Russia’s Gazprom PJSC said its natural gas deliveries to China have hit a new historic high amid rising demand.

Chinese National Petroleum Corp. requested volumes via the Power of Siberia 1 route that once again exceeded Gazprom’s contractual obligations on Nov. 23, the Russian producer said in a statement cited by state news service Tass on Saturday. 

“Gazprom supplied all the requested volumes and set a new record for daily gas supplies to China,” it said.

Gazprom and CNPC last month signed an addendum to their contract on gas supplies via the Power of Siberia 1 that provided for additional deliveries through 2023, providing no further details.

Russia aims to export 30 billion cubic meters of gas to China next year and eventually raise the flows to 38 bcm per year. Separate shipments via a future Far Eastern route are set to reach another 10 bcm per year. Gazprom is also in talks to supply as much as 50 bcm per year via the future Power of Siberia 2 link but the contract hasn’t been signed.

Gazprom says it sees its pipeline-gas flows to China matching its historical shipments to Western Europe, which have slumped as European countries moved to diversify their energy imports after Russia invaded Ukraine in 2022.

The Russian company sold approximately 120 bcm of gas to Western Europe in 2020.

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