Gazprom will increase export potential for entrance to APO markets

The delegation of Gazprom JSC headed by the Deputy Chairman of the Board, A. Medvedev participate in the Sixteenth International Conference ‘Oil and Gas of Sakhalin 2012’. At the main session, Mr. Medvedev presented a report devoted to Gazprom’s strategy in the Asian direction. Under the Governmental order, Gazprom Group realizes the Eastern program presupposing development of the necessary conditions for gas exports to China and other Asian states in Eastern Siberia and Far East. For this, Gazprom creates in the Russian East production centers, and has already completed construction of the Sakhalin – Khabarovsk – Vladivostok GTS, the first one in the Far East. Besides from that, Gazprom analyzes possibility of the construction of pipelines to China and South Korea.

Speaking about strategic interest of Gazprom in the APO, Mr. Medvedev explains that interest of the company is presupposed by the economy potential of the region and prospects of long-term growth in the demand for gas. Now many APO states have to provide their needs in gas at the expense of imported fuel, partially or fully. Asian states are able to become consumers of Russian gas, comparable to Europe. Already today APO is a premium market; they are ready to pay more than the USA and Europe. The main partners of Gazprom in the region are Japan, China and South Korea.

The attractiveness of the Japanese market is explained by its close geographical proximity, that gives the opportunity to reduce transport expenses. Gazprom also has a wide potential for broadening of cooperation vectors with Japan, in particular within the use of gas as a motor fuel, not for cars only but for ships as well.

China is at a special position in Gazprom’s strategy. Mr.  Medvedev says that partnership with China is oriented to the long-term future that defines the nature of negotiations on Russian pipeline gas supplies. The closure of the agreement depends on achievement of the consensus on the price parameters. They also discuss the prospects of broadening of bilateral cooperation for underground gas storages construction in China, and shale gas deposits development.

They are also going to build a gas pipeline with North Korea to South Korea that will strengthen not only energy safety, but also military and political safety in the Korean Peninsula. Now the joint working group of Gazprom and Kogas is engaged with coordination of the route of the future pipeline.

Other states of the region are also interested in Russian gas. Gazprom develops or plans cooperation with India, Vietnam, Pakistan, Bangladesh, Singapore, Taiwan and Thailand. In connection with that, Mr. Medvedev stated that at the background of fluctuations in demand in some regions, LNG was redirected to India and China, that was contracted for supplies to other markets.

A. Medvedev also mentioned perspectiveness of the use of LNG in APO as a gas motor fuel. He states that formation of gas motor direction will attract also transport companies, car manufacturer and many others that opens colossal prospects for joint operation.

Translated by Nadezhda Poltoratskaya

Source:  http://www.oilcapital.ru/company/178133.html

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