Moscow, Aug. 31, (dpa/GNA) - Russian energy company Gazprom is planning to celebrate a rush of record profits – despite international sanctions – by extending pipeline projects to China, a country that has vowed to stay true to Russia despite the Kremlin’s invasion of Ukraine.
“The working results for the first half of the year are very, very good. And of course these financial results leave us free to speak about the fact that, with these secured flows of cash, we are secured for the realization of our strategic investment projects,” said Gazprom boss Alexej Miller during a Wednesday phone conference, according to Interfax.
Miller said Gazprom is about to start linking up its European pipeline network to Russia’s east, which will line up with the new planned Power of Siberia 2 pipeline, which is being designed to bring gas from storage units in eastern Siberia to China.
Another route is being planned to go over Mongolia.
“We know that the Chinese market is the most dynamic worldwide and forecasts show that China will be responsible for about 40% of the increase in gas consumption in the next 20 years,” said Miller.
The planned construction of the Kovykta storage area in 2023 also means Russia will soon be placed to send more gas to China than currently planned.
Miller said he expects “significantly higher profits” than in 2021 despite falling sales in Europe, where most countries are trying to wean themselves off Russian gas to protest the war in Ukraine. Thanks to higher prices, Gazprom managed a record profit of about $42.06 billion for the first half of this year.
GNA