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The Globalization of Russian Gas

Political and Commercial Catalysts

James Henderson and Arild Moe

Since the collapse of the Soviet Union, Gazprom has dominated the Russian gas industry. However, the markets in which it operates have changed dramatically, with the company increasingly being challenged at home and abroad. At this critical moment, this insightful book analyses the involvement of the Russian gas industry in the changing international gas market and the dramatic implications for Russia’s role as a global supplier of gas in the future.
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Chapter 6: The promise of Asian markets

James Henderson and Arild Moe

Extract

Both commercial and political considerations are encouraging Russia to seek alternative markets for gas exports, with the Asia-Pacific region providing an obvious route for diversification. In particular, the proximity of huge gas resources in East Siberia to the world’s fastest growing gas market in China provides a clear opportunity. Chapter 6 analyses the development of Sino-Russian gas relations and how Russian gas fits into the Chinese energy strategy. Russian and Chinese preferences are not always in harmony, and the picture is complicated by the fact that all three major Russian gas producers have set their eyes on exports to the east.

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