Against the backdrop of a price rally in gas prices in Europe, China continues to receive Russian gas at bargain prices, Russian newspaper Vedomosti.
The JP Morgan report contains data that gas transported by the Power of Siberia in the third quarter cost only 0.9 yuan per cubic meter. In terms of this, this is approximately $ 140 per thousand cubic meters.
Thus, Russian gas for China was 4.2 times cheaper than LNG and 30% cheaper than raw materials from other pipeline suppliers.
Gazprom’s offer to China today is $ 4.2 per million BTU, in February and March the cost was only $ 3 (less than $ 120 per thousand cubic meters).
“Even Belarus doesn’t have such a discount on Russian gas,” commented Sergei Suverov, chief strategist at Arikapital.
According to the Federal Customs Service, in January-March Belarus purchased Russian natural gas at 6% more expensive than China, and Armenia – by 27%. The discount to deliveries to Europe was 23% at the beginning of the year, 38% in the summer and 42% at the end of August.
In 2021, gas supplies to China tripled, to 4.6 billion cubic meters in January-June.
Meanwhile, Vladimir Putin ordered the construction of a second pipeline to China – Power of Siberia – 2, which will pass through Mongolia and connect the fields of the Irkutsk Region, Krasnoyarsk Territory and Yamal with the Chinese market.