U.S LOSING GRIP ON EUROPE: RUSSIA TO REMAIN LARGEST SUPPLIER OF GAS TO EUROPE THROUGH 2040

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Russia will remain the largest supplier of gas to the European Union through 2040, despite a significant decline in demand for “blue fuel” in the region, according to an annual report published by the International Energy Agency.

Projections in the New Policy Scenario suggest that Russian gas is well positioned to maintain a strong position in the European gas import mix: while LNG imports grow, Russia remains the largest single supplier, with more than half of the European Union’s additional requests for 2017-2040, according to the World Energy Outlook report.

International Energy Agency projections indicate that Russian gas will maintain a market share of 30% of the demands of the European Union within the period between 2017 and 2040.

According to the document, over the years there will be a decrease in gas supply figures when compared to now. However, even with the decrease, Russia will account for 37% of the gas supplied to the European Union in the year 2040, according to the report’s projections.

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Meanwhile, the Russian energy giant Gazprom said it has built 93 percent of the Siberian Power pipeline, part of an agreement between Russia and China.

“In the section of the Siberian Power pipeline from Yakutia to the border between Russia and China, 2,010 kilometers of pipes were connected and installed, which corresponds to 93% of the toral extension,” the statement said.

The company also added that construction of the underwater dual line of Siberia Power crossing the Amur River continues with 78% of the works completed.

In 2014, Gazprom signed a 30-year agreement with China’s National Petroleum Corporation, establishing delivery of 38 billion cubic meters of Russian gas through the Siberia Power pipeline.

The pipeline will also transport gas from Irkutsk and Yakutia production centers to consumers in Russia’s far east. It can be expected in the future that it would also feed into consumers in Japan and the Korean Peninsula.

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