Gazprom to Increase Supply to Asia Through LNG and Pipelines

Gazprom will increase its supply of gas to Asia in the coming years through the construction of pipelines and supply of LNG, Deputy Chairman of Gazprom Alexander Medvedev has said.

Speaking at the Sakhalin Oil and Gas 2012 conference, Mr. Medvedev said that LNG and piped gas could open up the market for Gazprom's exports in the Asia-Pacific region.

"An additional confirmation of the upcoming 'golden age' of natural gas has been received at the recent APEC Summit where all member countries recognised the priority of this type of fuel in further energy development," he said in a speech at the conference.

"And if we take into consideration that today these countries are considered to be the drivers of sustained economic growth, we are looking into the future of our export policy in the Asian markets with great optimism."

LNG could become a particularly popular fuel in several Asian countries, Mr. Medvedev said, especially in relation to the fueling of vehicles in China, where CNG and LNG powered cars number 1.1 million this year.

Mr. Medvedev also told the attendees that gas trade to Asia was likely to more profitable than trade to Europe or the U.S., particularly given the population density of certain regions in Asia.

"Asian countries' dense population and high industrial capacity predetermine excessive demand for natural gas in the decades to come," he said. "They are able to become Russian gas consumers comparable in volume with European ones.

"So far, Asia-Pacific represents a premium market – it is ready to pay more for gas than in the trading platforms of the USA and Europe."