Gazprom saw in the liberalization of the LNG market the way to bring down prices for China


The change in the rules for gas exports from Russia, which gave the competitors “Gazprom” possibility to supply overseas liquefied natural gas (LNG), has weakened the position of the gas giant in talks with China national petroleum company (CNPC), was acknowledged by the Deputy Chairman of the Board “Gazprom” Vitaly Markelov.

“Chinese partners to put pressure on PJSC “Gazprom” in the issue of pricing used the argument about the possibility of receiving Russian gas in the form of LNG,” said Markelov in his interview to corporate magazine, talking about possible increase of gas supplies through the pipeline “Power of Siberia”.

Markelov also noted that the liberalization of LNG exports has a negative impact on negotiations “Gazprom” with China and other projects of Russian gas supplies.

In the same interview, the Deputy Chairman of Gazprom said that the company is preparing to launch the third phase of the LNG plant in the framework of the project “Sakhalin-2”.

The law on liberalization of LNG exports came into force in December 2013, and gave the right to supply LNG abroad “Rosneft” and the participants of the project “Yamal LNG”. Within a few months after that almost all volumes of the future production of LNG in the framework of the project “Yamal LNG” were contracted China’s CNPC, Spanish Gas Natural and other companies, including “a daughter” “Gazprom” Gazprom Marketing & Trading Singapore if you expect to sell annually in the Asia-Pacific region, primarily to India by 2.9 million tonnes of LNG.

“We are working together with the Yamal LNG project, concluded with them the contract for the purchase of gas. Why has this happened? They are not given to us these volumes. Because we were able to provide the most competitive conditions for the purchase of this gas”, — said later in an interview with the Deputy Chairman of the company, the former General Director of “Gazprom export” Alexander Medvedev.