Page 14 - RusRPTOct22

exports to EU countries remain at the level of August, Russia's gas production will also be significantly reduced at the end of the year.
Russian gas production (red) and export (blue)
2.4 Russia racing to export Asian gas exports
With European exports sharply down this year, the issue of expanding Gazprom’s export options to the east has become critical. Of the several options under active discussion, China and now Pakistan are figuring prominently.
New Asian gas export options under active development: Speaking with reporters on the sidelines of high-level meetings in Uzbekistan, Deputy PM Alexander Novak was optimistic regarding the outlook for redirecting Russia’s gas exports from European to Asian counties.
Gazprom needs new outlets as European export decline sharply: With Nord Stream-1, Yamal-Europe completely shut down now, and one of two key entry points to Ukraine now all closed, we think exports to Europe + Turkey may fall to c100bcm this year, and to perhaps 80bcm in 2023. Thus, expanding export options to Asia is a key strategic goal for both Gazprom and Russia as a whole. On that background, let’s look more closely at Mr. Novak’s statement:
- The Power of Siberia-2 contract could be concluded in the near future: This contract holds the prospect of redirecting 50bcm of West Siberian gas from Europe to Asia, a strategically significant amount. President Vladimir Putin recently stated that all parametres of the contract had been agreed to, including pricing structure, so a signing indeed could be imminent.
14 RUSSIA Country Report October 2022 www.intellinews.com