Gazprom will take China not in price but in volumes


The coronavirus epidemic that erupted in China has made adjustments to gas consumption and, accordingly, its cost in the South Asian region.


Actually, due to a number of factors, such as high reserves, warm weather and an oversupply, the price of gas was already at a low level.

However, the outbreak in China led to the fact that the price of "blue fuel" in South Asia fell even lower and amounted to $ 135 per thousand cubic meters.

Gas market players still have fresh memories of how in 2003 the SARS (SARS) epidemic led to a 0,5% decline in China's GDP.

LNG suppliers are gearing up for the worst - reducing gas consumption in the country's industrial sector, closing down enterprises, further lowering gas prices and suspending existing supply contracts.

At the same time, experts note that in the current situation, Russian gas turned out to be the most protected: without bringing excess profits due to the unfavorable situation, it nevertheless allows Gazprom to build a long-term strategy and earn on the volumes supplied to China.

Their arguments are based on the belief that the coronavirus epidemic in China is a seasonal and temporary phenomenon, as has happened more than once in the past two decades.
  • Photos used: pixabay.com
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  2. gorenina91 Offline gorenina91
    gorenina91 (Irina) 8 February 2020 03: 32
    -2
    At the same time, experts note that in the current situation, Russian gas turned out to be the most protected: without bringing excess profits due to the unfavorable situation, it nevertheless allows Gazprom to build a long-term strategy and earn on the volumes supplied to China.

    Their arguments are based on the belief that the coronavirus epidemic in China is a seasonal and temporary phenomenon, as has happened more than once in the past two decades.

    - In the elderberry garden ... - in Kiev, uncle ...
    - In other words ... - Any epidemic is beneficial for China ... - the losses from them are small; but prices for supplied hydrocarbons (oil, gas) are noticeably falling ...
    - Maybe in China all these "epidemics" have long been included in the state budget ???
    1. Sergey Latyshev Offline Sergey Latyshev
      Sergey Latyshev (Serge) 8 February 2020 12: 05
      -2
      Surely. Not the first time. And then there’s cheap gas on their own ...
  3. boriz Offline boriz
    boriz (boriz) 8 February 2020 18: 26
    +1
    One must still look sensibly at things. We are now exposing Gazprom and the authorities for low gas revenues, and then, separately, for not developing the Far East. And we will be fighters for all the good, against all the bad. Say, we are not Pushkins by nature, we are Belinsky by nature ...
    And there would be no rubbing his eyes ...
    Then they would have seen that, due to the Force of Siberia, they had brought gas to the Far East. After all, all critics live in comfort, closer to the gas ... And when would he be able to drag him to the Far East without the Power of Siberia? And so, already exactly 200 settlements are gasified. Tsiolkovsky has already been gasified. This is the Vostochny cosmodrome, if anyone did not know. In front of the border with China, the Amur Gas Processing Plant is in full swing. He will take high molecular fractions and helium from the gas. And only methane will be sent to China. And from the rest (SibUR will build its plant) they will make varnishes / paints, solvents, plastics, and much more useful things. And this is GDP, jobs, taxes, infrastructure. Even if the Power of Siberia goes to 0, there is already a lot of benefit. Not everything is measured by money here and now. It is necessary to look at the future. In 20 years, all gas from this string can be developed domestically.
    1. Pivander Offline Pivander
      Pivander (Alex) 9 February 2020 11: 46
      0
      According to all-proponents, the fact that the Far East still belongs to the Russian Federation is a very big omission. There, Biden must already be in full command. Walking with a whip and ..... natives.