Add to favorite
 
123
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS


Gas Supply to South Korea
February 27, 2014 10:32


(Source: http://www.gazprom.ru/press/reports)

Russia may begin to supply gas to South Korea via gas pipeline through the territory of China.

The experts of the sector remind that this project has already been discussed, and then all participants expressed distrust to China, expecting the repetition of the Russian-Ukrainian situation. Meanwhile, the supplies via pipeline can closely bind South Korea to Russia, and in this light all risks are justified, according to political analysts. Russia considers the option of gas supply to South Korea via pipeline through the territory of China. This was told by the Head of the Russian Ministry of Energy Aleksandr Novak. He also noted that the priority option is the export of liquefied natural gas (LNG) from the plants “Gazprom” (Vladivostok) and “Rosneft” (Sakhalin).

However, according to the estimates of Korean experts, supplies via pipeline will cost on average 30 % cheaper than LNG transportation. “We offered two options of the project. The first one was the construction of a pipe through China laying it along the bottom of the Yellow Sea to South Korea. And the second one was the laying of a pipe directly to South Korea from Vladivostok along the bottom of the Pacific Ocean” – Novak told. The second option was rejected by “Gazprom” because of the rugged bottom topography, deep waters and a small amount of supply (only 10 billion cubic meters). These factors made the project unprofitable, and it is not considered now, according to Novak.

At the same time, the first option is at the development stage, for it affects the transit China as well. In addition, the option of laying the pipe by land through North Korea was previously considered, but “Gazprom” rejected it as well, because of political risks. “Gazprom” refused to comment on Novak’s message, but, according to a source from inside of the sector, the company currently does not consider any pipeline projects of gas supply to South Korea, focusing on LNG. “Liquefied natural gas is really a priority for South Korea, the country is the second largest LNG consumer in the world (after Japan)  purchasing about 40 million tons (or about 56 billion cubic meters) and possesses a developed infrastructure for receiving liquefied natural gas” - the leading expert of the Union of Oil and Gas Producers of Russia Rustam Tankaev assumes.

“The Republic of Korea is not interested in pipeline projects; moreover, the South Koreans do not treat the Chinese as reliable partners.” According to Tankaev, the project of laying the pipe to South Korea through China was considered in the early 2000s, and even at that time it wasn’t a new one. “Then it turned out that none of the participants of the project believes that the Chinese will allow a free flow of contracted volumes” - the expert emphasizes. “All participants came to the conclusion that the situation will be the same as between Russia and Ukraine.”  

By the way, Russia is still unable to agree with the Chinese on gas supplies to People’s Republic of China itself. The negotiations already last several years, but the issue of price has not yet been resolved. Earlier it was reported that “Gazprom” plans to enter into a definitive agreement with China during the visit of the Russian President Vladimir Putin to the country in May. However, prior to that “Gazprom” stated that the company intended to sign the contract in February.


Sources: http://gazeta.ru 


Author: Anna Dorozhkina

Tags: Gazprom South Korea gas pipeline   

Next Previous

You might also find interesting:

The Government of Finland Approved the Construction of Russian Gas Pipeline Nord Stream-2 Lada Vesta Sales Started In Germany Top 3 Videos From Russia Global Oil Demand Reduces Lightcoin (LTC) has Risen in Price by More than 36 Percent









Comment on our site


RSS   twitter   facebook   submit

Bookmark and Share

search on the map
TAGS:
Russian oil companies  Monuments in Moscow  World Combat Games   Vitaly Pushnitsky  Russian regions  Mercedes-Benz Fashion Week Russia  St. Petersburg  Gold Mask  Moscow  Bolshoi Theater  Tanais   Life Saving  Perm  Moscow Museums  Vladivostok  Rosneft  Yaroslavl   Inter-Continental Hotel Group  Arctic Ocean  Kuba  travel to Russia  medicine  Elbrus  Environment Protection  city guide  Russian business  Moscow Zoo  Russian tourism  poll  Surgutneftegas  Ski resorts  Russian coal mine  Russian Sculpture  Moscow restaurants  Exhibitions in Moscow  Russian planes  corruption  Maroseika  Veronika Skvortsova  Soyuzmultfilm  Omsk  Baikonur  Winzavod  Ecotourism  Russian Cinema  Festivals in Moscow  ski jumping  Exhibitions in Moscow  Concerts in St. Petersburg  Russian cuisine 


Travel Blogs
Top Traveling Sites