In Freight News 09/03/2015
Gazprom, Russia’s largest state enterprise and the world’s leading natural gas supplier, will begin supplying natural gas to China in four to six years, said Andrey Kruglove, the company’s chief financial officer, according to the Guangzhou-based 21st Century Business Herald.
The supply is based on an agreement signed by Gazprom and China National Petroleum Corp (CNPC) on May 21, 2014. According to the deal, the former will supply natural gas via its eastern pipeline gas to China at an amount that will increase annually until it peaks at 38 billion cubic meters a year. The 30-year agreement is worth US$400 billion.
Furthermore, the two companies inked another framework agreement last November, calling for Gazprom to supply natural gas to China via its western pipeline.
Once legal barriers have been lifted, Gazprom is looking to list on the Hong Kong bourse by the end of the year, Kruglove said.
“Asia will be the main source for the growth of our supply and revenue in 10 years, enabling us to shed our heavy reliance on Europe,” he added. He expects Gzarpom’s supply to Asia will equal Europe’s in 10-15 years.
The company now supplies 150 billion cubic meters of natural gas to Europe a year, which accounts for 60% of its revenue.
The upcoming share listing in Hong Kong will further strengthen Gazprom’s ties with Asia. “Currently, Asian investors own 10% of our company’s global depository receipts, up from 4% three years ago, which will rise further in coming years,” Kruglove said.
