Gazprom may build thermal power plant in China

Gazprom has started seriously thinking about the construction of power plants in China, which can be supplied with Russian gas through pipelines or as LNG. According to the Kommersant’s interlocutors, the Chinese have long offered the monopoly to participate in the development of local energy market. But experts are cautious: the projects of a thermal power plant on the regulated market of China can be cost-effective only under certain conditions and make Gazprom strongly dependent on the authorities.

Gazprom has announced a tender for a feasibility study the company participation in the projects of construction of gas thermal power plants in China and supply of gas to them. In particular, the construction of thermal power plants along gas pipelines from the Russian Federation, as well as in the vicinity of LNG receiving terminals is considered. It is also necessary to explore the possibility to attract Chinese financing. This is the first real proof of the Gazprom’s interest in the energy market of China, although the topic has been discussed at the negotiations with the Chinese at least since 2013. A source of the Kommersant in Gazprom confirmed that the possibility of building a generation in China was considered seriously.