Analysts: We think it illogical not to offer Eastern Siberian gas to China

The chairman of the Board of Management of OAO “Gazprom” A.Miller and the president of Kogas Choo Kang-Soo signed a “road-map” on the implementation of natural gas supply from Russia to Korea via the territory of the Korean National-Democratic Republic and discussed the matters, concerning practical work organization on its implementation.

“We think, the analysts of DEUTSCHE BANK comment, the project can be implemented technically. However, political situation on the Korean peninsula is not stable. As South Korea is going to be the main consumer of the Russian gas, it is necessary to take into consideration the risks of gas transit via North Korea. We do not exclude that Gazprom has activated negotiations with South Korea in order to speed up the process of gas prices discussion with China. We think it illogical that Gazprom did not offer eastern Siberian gas first to China. It is more competitive than the west Siberian one. Besides, it can be supplied to the north-eastern regions of China, which is short of supply. We do not consider the signing of the project on gas supply to Korea to be  aGazprom’s shares climb accelerator,” RBK daily writes.

http://www.oilru.com/news/278093/

Translated by Iraida Idiyatova