Insight
How will Power of Siberia shape China’s gas market?
Report summary
Russia’s dream of piped exports to eastern markets is now a reality. The successful launch of the Power of Siberia gas pipeline on 2 December is a key milestone in the China-Russia energy relationship. It will diversify Russia’s gas export mix and help China achieve a cleaner energy mix. But there are several risks to Russian gas imports and Gazprom's initial ramp-up plans. In this insight we will review: • Where in China will Russian gas be most competitive? • How will Russian gas imports change the supply mix in Chinese target markets? • What are the key risks to the Power of Siberia ramp-up? Please read our Insight to find out more.
Table of contents
- Executive summary
- Power of Siberia commissioning – a landmark for both Russia and China
-
How competitive will Russian piped gas be in China?
- Gazprom is unlikely to achieve its initial ramp-up target
- There is room for PoS gas across China's regional markets
- Northeast region – the initial and core focus for Russian gas
- Beijing-Tianjin-Hebei and Shandong – a competitive heartland
- Yangtze River Delta – the end of the line for PoS gas
-
What are the key risks and uncertainties?
- Upstream – lots more work to come for Gazprom
- Infrastructure – China’s pipeline connections are far from complete
- Demand – clouds gather over China growth outlook
- Gas-on-gas competition – China’s market reforms could reshape the state of play
Tables and charts
This report includes 13 images and tables including:
- China’s internal pipelines for PoS gas (Russia-China East)
- Power of Siberia and China’s pipeline network
- Power of Siberia ramp-up
- Russian gas’ share in total gas imports mix
- Northeast region demand outlook
- Northeast regional gas infrastructure
- Delivered cost to Northeast region (US$/mmbtu, real)
- BTH - Shandong demand outlook
- BTH - Shandong regional gas infrastructure
- Delivered cost to BTH-Shandong (US$/mmbtu, real)
- Yangtze River Delta demand outlook
- Yangtze River Delta regional gas infrastructure
- Delivered cost to Yangtze River Delta (US$/mmbtu, real)
What's included
This report contains:
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