Russian Natural Gas Exports to China via Far East Route to See Big Boost

SEATTLE (Oil Monster): The ratification of the intergovernmental agreement with China on the cooperation for natural gas supplies from Russia to China via the Far East Route by Russia is expected to provide big boost in natural gas supplies via the Far East route. It must be noted that the Federal Council of Russian parliament had approved the ratification at a plenary session held Wednesday.

The agreement on natural gas cooperation was signed between the two countries on 31^st January, 2023. The agreement outlines the terms and conditions of the proposed cooperation including the transborder section of the gas pipeline across cities in both the countries. Upon reaching full capacity, Russia could send nearly 10 billion cubic metres to China every year over the next 25 years period via the Far East Route.

According to analysts, the natural gas exports from Russia to China are expected to total 48 billion cubic meters. The enhanced Russian gas supply will compensate for the uncertainties with regards to supply from Central Asian countries. The oil and gas trade between the two countries is expected to gain further momentum during the current year.

As per figures, the Chinese imports of Russian pipeline gas surged higher by 2.6 times to $3.98 billion in 2022. At the same time, the LNG imports were up 2.4 times to total $6.75 billion. Also, the Chinese imports of Russian crude oil had recorded 8% year-on-year in 2022.