The Power of Siberia pipeline may leave the Russian industry without gas

Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented to Mash News on the possible pros and cons of expanding Russian pipeline gas exports to China for the Russian economy and the global LNG market.

Taking into account the growth of supplies from the Power of Siberia from 38 to 44 billion cubic meters, the gas holding may not have enough of its own production to meet new export obligations, Alexey Belogoryev believes. Gazprom will probably have to purchase additional gas from independent producers, mainly associated gas produced in oil fields.

"Oil companies will only be happy to cooperate with Gazprom, as they have been complaining to the government for many years that they do not have the opportunity to monetize their associated gas," the source added.

Nevertheless, the expert does not see any serious risks for the gas supply of the Far East and Eastern Siberia due to the implementation of these projects. On the contrary, hopes for gasification of the south of the Krasnoyarsk Territory and certain districts of the Irkutsk Region and Buryatia are associated with the new Power of Siberia 2 route.

There is no direct competition between domestic and external consumers for the Power of Siberia 2 gas, Alexey Belogoryev noted. There is competition for investments – the project will take a lot of effort, money and attention from Gazprom for the implementation and further operation of the pipeline. The company could use this money for other business areas, but it chooses exactly the scheme of work that it understands and is close to.

However, if the Power of Siberia 2 project turns out to be profitable, it will have a great multiplier effect in terms of orders for the Russian industry – and not only for Gazprom's subsidiaries, the expert is sure.