Neftegaz: Russian Gas Exports to Asia Expected to Quadruple by 2020

Russian gas exports to Asia will increase by the end of the decade from 11.8 billion m3 this year to 44.2 billion m3 by 2020, international business intelligence firm GlobalData predicted.

China, Japan, and South Korea are expected to be Russia’s primary export locations by 2020 because of their growing demand for liquefied natural gas (LNG).

Russia is reevaluating its natural gas export strategy as Europe reacts negatively to its pricing system. The decline in global natural gas prices on the spot market and the rising price of Russian gas has caused European utilities to rethink their traditional import/export agreements with Russia. Europe was the destination of 93% of the country’s gas exports last year, but Russia will likely seek Asian export partners if it encounters reduced demand from Europe, the international business intelligence firm said.  MORE