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    Gazprom discloses details of Chinese gas sales


The company has traditionally kept details of its gas sales to China a closely guarded secret. [image credit: Gazprom]

by: Joseph Murphy

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Natural Gas & LNG News, Europe, Top Stories, Corporate, Contracts and tenders, Infrastructure, Power of Siberia, News By Country, Russia

Gazprom discloses details of Chinese gas sales

Russia's Gazprom has revealed data that makes it possible to estimate the price at which it sells its natural gas to China via the Power of Siberia pipeline.

Gazprom's deputy chairman, Famil Sadygov, disclosed at a press conference on June 16 that the state-owned company had earned 44.3bn rubles ($610mn) from pipeline gas sales to China, while volumes amounted to 4.1bn m3. This means that Gazprom sold the gas at an average price of around $150/'000 m3.

Gazprom is contracted to supply 10bn m3 of gas via Power of Siberia this year, and China's CNPC must take or pay for 85% of these volumes. The gas price is tied to the price of oil products with a nine-month lag, although Gazprom has never before disclosed the pricing formula.

Power of Siberia began flowing gas to China in December 2019 and shipments are expected to eventually ramp up to 38bn m3/yr.