MOSCOW - Gazprom PJSC (OTC: OGZPY ) has set a new record for daily natural gas deliveries to China, addressing an above-contractual request by China National Petroleum Corporation (CNPC) through the Power of Siberia 1 pipeline. This milestone, reached on Thursday, marks a significant uptick in energy cooperation between Russia and China.
The surge in deliveries comes after the two companies amended their agreement last month, allowing for additional gas supplies through the upcoming year. This adjustment is part of a broader strategy by Gazprom (MCX: GAZP ) to significantly boost its gas exports to China. The Russian energy giant is aiming to increase annual supplies from the current goals of 30 billion cubic meters (bcm) to nearly 50 bcm, combining future volumes from a planned Far Eastern route and potential negotiations for a Power of Siberia 2 pipeline.
This strategic pivot towards Asia follows the post-Ukraine invasion shifts in European energy sourcing, which has led to a decrease in Russian gas exports to Western Europe—a historical benchmark that stood at around 120 bcm prior to the pandemic years. Gazprom's efforts are seen as aligning with European moves toward energy diversification.
In addition to setting new records, Gazprom is also in talks for further expansion. The company is considering a Far Eastern route that could add about 10 bcm per year in capacity and is engaging in discussions over a possible Power of Siberia 2 link, which could contribute another 50 bcm annually.
These developments underscore Russia's commitment to strengthening its role as a major energy supplier to China, compensating for the shifting dynamics in global energy markets and the reorientation of supply chains following geopolitical events.
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