In July, Russia ranked third in terms of pipeline gas supplies to China

In July, Russia ranked third in terms of pipeline gas supplies to China

In July, Russia ranked third in terms of pipeline gas supplies to China

With the growth of natural gas supplies to China via gas pipelines from all suppliers, Russia in July 2020 was able to move from fourth to third place in terms of exports, according to data from the Chinese customs.

The first place in terms of the volume of supplies is occupied by Turkmenistan, followed by Kazakhstan. Russia's Gazprom (MCX: GAZP) came in third, surpassing Myanmar. At the bottom of the list is Uzbekistan, which, nevertheless, in July increased supplies in relation to June by almost two-thirds.

In July Gazprom supplied 379 million cubic meters to China. meters of gas (12.2 million cubic meters per day), which is another record in the history of deliveries via the Power of Siberia pipeline. In June, the pipeline supplied 10.2 million cubic meters. m per day.

Russian gas supplies to China from the Chayandinskoye field in Yakutia via the Power of Siberia began at the end of 2019, the first 5 years are set aside for increasing volumes to 38 billion cubic meters. m per year. In 2020, the contract provides for 5 billion cubic meters. m (the minimum annual amount under the “take or pay” condition is 85% of the annual contractual amount – 4.25 billion cubic meters). Since the beginning of 2020, in the first 7 months, Gazprom has supplied 1.961 billion cubic meters to China. m.

Turkmenistan has increased supplies to 1.788 billion cubic meters. m or 78.3 million cubic meters. m per day. By June, supplies increased by 7% in daily terms and exceeded the supply volume even in February of this year.

A new piece of data from Chinese foreign trade statistics regarding supplies from Kazakhstan gave an answer why gas imports to China fell sharply in June – because it rose sharply in July. Probably most of the data on Kazakh gas supplies to China in June was reflected in the statistics for July, along with the actual July data.

Gas supplies from Uzbekistan to China increased in July by 60% compared to June – to 10.74 million cubic meters. m per day, which is the highest level since the beginning of 2020.

Russian LUKOIL (MCX: LKOH), which operates in a number of gas projects in Uzbekistan, reported a decline in production in this country in the first quarter due to a decrease in demand in China for Uzbek gas due to coronavirus restrictions. In June, the Russian company's production declined to about 40% of its design capacity, and in August it completely stopped production at one of the projects and stopped exporting gas from Uzbekistan to China. “At the moment, the volume of daily production is about 20% of the design capacity, and the production under the Gissar project has been completely stopped,” LUKOIL said in its semi-annual IFRS report. It was possible to resume production at the project only in mid-September.

In total, Chinese imports of pipeline gas in July 2020 (according to official data) increased to 4.47 billion cubic meters. m from 3.039 billion cubic meters. m in June. However, adjusted for the “Kazakh” anomaly, it turns out to be approximately 3.9 billion cubic meters. m in July and 3.6 billion cubic meters. m for June.

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