Beijing's growing demand for gas opens up prospects for supplies from Russia

In five years, gas demand in the Chinese capital will increase by about 50 percent. The increase is the result of China's policies to improve air quality in the capital and move away from coal. At present, the air in Beijing contains many harmful impurities from the use of coal for heating, boiler houses and coal stoves.

However, the government is trying to change this situation. Air pollution not only has a negative impact on health, but also on the economy. Experts ask themselves where the additional volumes of gas should come from. Two vendors have been identified as possible sources. First, Russia, which wants to supply China with gas from Siberian fields. Secondly, due to the relatively short distance from the sea, it is also possible to transport LNG.

But for supplies to be stable, underground gas storage facilities are needed. According to unofficial information, Gazprom and China's CNPC have agreed on the location and capacity of the storage facility. It is also known that the Russians, who have vast experience in this matter, will be responsible for the construction. The Chinese will be the suppliers of labor and materials, as well as providing funding.

In 2015, according to the Chinese statistical office, gas use in the Chinese capital was 13.8 billion m3, but a surge in consumption is expected soon. In 2020, this figure should significantly exceed 20 billion m3 of gas.

Gazprom wants to build underground gas storage facilities for China, as the supply of raw materials to Asia is an alternative to the shrinking European gas market. And the biggest market is China.

At the same time, for LNG supplies, it would be necessary to build a new LNG terminal designed specifically for Chinese capital. According to experts, this is possible. Moreover, this will mean independence from only one supplier.