Alexey Gromov, Principal Director on Energy studies at the Institute for Energy and Finance, commented to the Neft and Capital Internet portal on the prospects for Russian gas after its supplies to the EU are stopped in 2027.
Despite the extremely difficult situation, there is some hope that Russian gas, which will be expelled from Europe, will still have some options other than the Chinese consumer. However, not immediately."The only market that is open to us under the sanctions is the Chinese one. We have experience working on it from the Arctic LNG 2 project. However, China will definitely take advantage of the moment, demanding discounts from the Russian side, including on gas from Yamal LNG, which, after the closure of the European market, will also have to deploy supplies to China. According to indirect data, gas from Arctic LNG 2 was publicly valued in China at up to 30% of the market value in the region," Alexey Gromov shared his opinion.
As Alexey Gromov noted, there is an Indian and even a Pakistani market. In the future, they are ready to choose more and more global LNG supplies, including supplies from Russia. However, we should prepare for the fact that they will have to provide discounts in the face of sanctions from the West, just like China. India and Pakistan will definitely not choose all 38 billion cubic meters of Russian gas that are currently going to Europe. But even if they start buying 30-40% of this volume, it will be a little easier to bargain with China.
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