Speech delivered by Alexey Miller at “Challenges and Opportunities at the Growing Energy Markets in Asia” conference (General Meeting of International Business Congress)

Speech delivered by Alexey Miller at “Challenges and Opportunities at the Growing Energy Markets in Asia” conference (General Meeting of International Business Congress)

Dear ladies and gentlemen, dear colleagues, dear friends,

Economic growth means growth in energy consumption. And it is, doubtless , essential for the countries of Asia and Asia-Pacific to possess an eco-friendly energy mix. This, in turn, means their energy mix has got to include a considerable share of gas because the most eco-friendly, reliable and affordable natural resources of all. And most significantly , it’s hard to seek out an alternate to gas in terms of the extent to which the technologies of its use are developed.

The Asian market – the market of Asia-Pacific – has an exceptionally large capacity. consistent with forecasts up to 2040, consumption during this region will grow by 1.5 trillion cubic meters of gas, of which 60 per cent are going to be imported.

There is little question that the Chinese market is that the most dynamic and fast-growing one, and it shows simply unbelievable consumption growth rates per annum . The year 2021 is not any exception. within the half of the year, gas consumption in China grew by 15.5 per cent. the quantity of imports increased by 23.8 per cent. this suggests that China’s projected consumption supported the results of 2021 will amount to 360 billion cubic meters, and therefore the volume of imports will total 160 billion cubic meters. Moreover, the annual volume of gas imports is predicted to succeed in 300 billion cubic meters as early as by 2023, in only 15 years. The figure is simply staggering.

Gazprom has an in depth presence within the Asian market. We supply both liquefied gas and pipeline gas there. Speaking of liquefied gas , Gazprom is supplying LNG from its portfolio to the Republic of Korea, Japan, China, and India. The latter accounts for a few quarter of sales from our entire LNG portfolio, and these sales volumes are substantial.

But, of course, the best prospects are related to continued increases in pipeline supplies to the Asian market. during this regard, it’s to be noted that Russia has competitive advantages during this sphere, i.e. the competitive advantages of Gazprom in pipeline gas supplies.

Last winter, Gazprom successfully demonstrated these advantages. this suggests that we supply gas to the complete extent and during a reliable and stable manner, even as required by our consumers, during the autumn/winter period. we all know alright the way to affect seasonality, and that we skills to figure within the cold period of the year, in winter. And, I think, our Company is that the best one within the world when it involves these activities.

As for our pipeline supplies to China, they’re growing. Today, they already total over 10 billion cubic meters of gas under the thirty-year contract. On some days, Gazprom supplies gas in more than the contractual obligations upon request from our Chinese colleagues.

The contract may be a unique one. it’s the world’s largest contract for gas supplies: 38 billion cubic meters of gas for 30 years. Having signed this contract, China has become during a ll|one amongst|one in every of”> one among our biggest consumers in a flash. In fact, today we will say that the cooperation between Russia and China is that the cooperation between the most important producer and therefore the largest importer.

Indeed, Russia’s gas reserves – Gazprom’s gas reserves – are, as you recognize , the most important within the world. and that we aren’t getting to have any problems with our reserves for subsequent 100 years. Some fields that we are currently pre-developing within the Yamal Peninsula are going to be active until 2132.

In Eastern Siberia, we’ve large fields like Chayandinskoye and Kovyktinskoye, whose aggregate reserves amount to about 4 trillion cubic meters of gas. Only 1 / 4 of gas from these fields has been sold to consumers – merely 1 trillion cubic meters of gas. this is often why the prospects of pipeline gas supplies are undoubtedly immense.

Gas from Eastern Siberia may be a multi-component gas. As you recognize , we’ve already put into operation two trains of the Amur Gas Processing Plant and a helium production facility. With a capacity of 42 billion cubic meters of gas, it’s the world’s second-largest gas processing plant. because of the multi-component resource base of Eastern Siberia, we will produce ethane, propane, butane, pentane-hexane fraction and, crucially, helium. the quantity of helium produced at the Amur Gas Processing Plant will total 60 million cubic meters of gas per annum . it’s the world’s largest helium production facility covering a 3rd of the worldwide demand.

What is helium? Helium is computer chips. Helium is glass fiber . Helium is LCD monitors. most significantly , it’s the understanding that helium is employed in both space technologies and modern medicine. And it’s Asia that’s a serious and dynamic marketplace for helium.

Apart from the resources of Eastern Siberia, Russia’s largest reserves are based in Western Siberia, of course. This includes not only our traditional region, Nadym-Pur-Taz, but also a replacement gas production center, i.e. Yamal. Gazprom has created a replacement center for gas production which will be the backbone center for Russia and for our foreign consumers in many decades to return , and even within the 22nd century.

At an equivalent time, within the course of labor on a project like Power of Siberia 2 it becomes truly evident that there’s an opportunity to provide gas from Western Siberia not only to the east or Russia, not only to major industrial centers in Eastern Siberia, but also for exports to the west and to the east. this is often why the expansion prospects of pipeline gas supplies are simply huge.