Russia to supply China with gas by almost 30% cheaper than European consumers by 2027 – Bloomberg
Russia will supply gas to China at a price 28% lower than the one for European consumers at least until 2027.
Source: Bloomberg with reference to the forecast of the Ministry of Economic Development of the Russian Federation.
Quote: "Gas prices for the Asian nation are expected to be as much as 28% below those for Russia’s remaining European clients at least through 2027, according to the economic outlook prepared by the Economy Ministry," Bloomberg writes.
The forecast indicates that Moscow's relentless attempts to strengthen energy links with China will be hampered by budgetary constraints as a result of the confrontation with the West. Even before the full-scale invasion, Russian gas giant PJSC Gazprom stated it saw the Asian country as a prospective market, with demand in European markets expected to fall by the end of the decade.
This year, the ministry expects gas exports to China to cost US$257 per 1,000 cubic metres, compared to US$320.30 for flows to Western markets under the baseline scenario. From 2025 to 2027, the price for China will gradually fall, while the price for deliveries to the West is expected to remain roughly constant.
Background: Russian Gazprom was forced to close more than two dozen gas wells in Orenburg Oblast due to flooding.
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