China will not compensate Russia for the loss of the European gas market, according to Bloomberg
The Russian government expects that, over the next few years, natural gas sold to China will be about one-third cheaper than that sold to European buyers. This suggests that shifting exports to Asia will not be enough to fully offset the loss of the European market.
This is reported by Bloomberg.
According to forecasts, the average price of Russian gas for China in 2026 will be about $258.8 per thousand cubic meters. This is more than 38% lower than the average cost of supply for a limited circle of European customers who continue to buy Russian gas.
The price difference will gradually narrow in the coming years, but even in 2029, it will remain significant—over 27%.
Following a sharp decline in exports to Europe, Russia lost its main profitable market. China has become the primary destination for supplies, but at lower prices, which reduces the supplier’s revenue.
Gazprom CEO Alexey Miller attributed the price difference to logistical factors and the geography of supply:
“Prices for China are objectively lower than for Europe, since the gas fields supplying gas to Asia are located closer to the consumer.”
Analysts note that despite the increase in supplies to China, the Asian market is unable to fully compensate for Russia’s financial losses following the loss of most European contracts.
The Russian Federation expects to supply natural gas to China at prices significantly lower than those for European markets, at least until 2029.
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