The CHN/ China thread

[Jimbuna]

Russian gas supplies to China hit new daily record - Bloomberg

Russian pipeline gas exports to China have reached a new daily record, even surpassing Russia’s maximum contractual obligations, according to Bloomberg.

Gazprom announced that daily flows through the “Power of Siberia” pipeline exceeded Russia’s maximum contractual commitments, though exact figures were not disclosed.

The outlet noted that starting December 1, Gazprom increased supplies to the equivalent of 38 billion cubic meters per year, matching the design capacity of the Power of Siberia pipeline.

Given this, Bloomberg speculates that China may become Russia’s largest market for pipeline gas this year, as Gazprom grows increasingly dependent on China as a buyer after most of its European customers rejected Russian supplies following the invasion of Ukraine.

Breaking ties with Gazprom

At the end of last month, Austria ended a five-decade-long relationship with Gazprom, prompted by the seizure of Russian gas.

The Austrian company OMV won an arbitration case in Germany against Gazprom for 230 million euros over irregular supplies to its German subsidiary. OMV also announced it would take steps for immediate enforcement of this claim against Gazprom’s invoices.

Later, Bloomberg observed that OMV’s decision to halt payments to Gazprom could set a precedent for other countries, as they also aim to reduce their dependence on the Russian gas monopoly.