Thanks to record profits, the Russian giant Gazprom will speed up the construction of gas pipelines to China. And on Wednesday, according to Interfax, CEO Alexej Miller spoke about it during a conference call. Gazprom increased gas exports to this Asian country by 60 percent year on year from January to the end of August.
Construction of Siberian Gas Pipeline in North China (Photo from April 2020) | Photo: oriental photo | Source: Reuters
“The results of the work in the first half of the year are really very good. And this financial result, of course, allows us to say that we have secured cash flows to implement our strategic investment projects,” Miller said.
Gazprom made a record 2.5 trillion rubles (about 1 trillion CZK) in the first six months of this year.
According to Miller, the company can soon begin to connect its gas pipeline network in European territory to the east of the country.
Russian gas supplier Gazprom has made record profits this year, about a trillion kroner
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In addition, the head of Gazprom announced that the planned gas pipeline Power Siberia 2. The pipeline is supposed to transport gas from deposits in Eastern Siberia to China. A detour through Mongolia is also scheduled.
“We know that the Chinese market is the most dynamic in the world, and the growth in gas consumption in China is expected to account for 40 percent of the global growth rate over the next 20 years,” Miller said.
With the Kovicta field operational by 2023, Russia is ready to supply China with more gas than previously agreed, the head of Gazprom specified.
On Wednesday, Gazprom again cut supplies through the Nord Stream 1 gas pipeline, the main route for transporting Russian natural gas to the European Union. The announced closure is expected to last until Saturday morning.
Despite lower sales to Europe, Gazprom expects significantly higher profits this year than last year. Miller concluded that Russian gas storage tanks are 92 percent full. Gazprom is controlled by the Russian government.
