The head of “Gazprom Export” has disproven some experts’ statements on the unprofitability of Russian gas deliveries to China along the Eastern route.
Speaking at a press conference in Saint Petersburg, she declared that the contract between Gazprom and the Chinese CNPC is not unprofitable even with oil at $50 per barrel. The Agreement fixes the price which will be the starting point for the moment of delivery initiation. At this point, the price is not unprofitable. Later on, time will tell, Burmistrova said.
Speaking about the contract for the Western route, she stressed that negotiations, including over price, are ongoing. Each party has their own position, but a compromise is likely to be found.
To remind you, Gazprom is to start natural gas deliveries via the “Power of Siberia” main pipe-line branch pipes from May, 2019. 5 bln m3 of gas will be delivered to the PRC. By 2021 the amount of gas will increase up to 38 bln m3 a year.