Russia’s export strategy
Russia regards gasification of its eastern provinces as a key strategic priority.
Increased export sales will be vital to underpin the economics of supply developments. Gazprom’s production growth will rely on growing eastern output, as it faces more competition west of the Urals. It would therefore appear to be in Russia’s interest to conclude an agreement with China. Competitive tension is also being created via discussions on piped gas exports to Korea, LNG from Vladivostok and potential Sakhalin expansion.
[Russia’s gas matrix] Unit: BCM (Billion cubic meters)
| Supply sources | 2002 | 2008 | 2012 |
|---|---|---|---|
| Gazprom production | 522 | 500 | 488 |
| Non-Gazprom production | 73 | 114 | 169 |
| Central Asian imports | 7 | 61 | 33 |
| TOTAL | 602 | 725 | 690 |
| Markets | |||
|---|---|---|---|
| Russian domestic gas demand | 365 | 406 | 425 |
| Exports to CIS countries | 89 | 89 | 63 |
| Exports to Europe | 129 | 159 | 139 |
| LNG exports to Asia | 0 | 0 | 14 |
| TOTAL | 583 | 654 | 641 |
References:
- James Henderson, “The outlook for Russian gas,” Oxford Institute for Energy Studies, 2015.
