The anticipated price of Russian pipeline gas for China is set to decrease over the upcoming years. This price is considerably lower than what Moscow offers to Europe, as indicated by a Russian government report reviewed by Reuters.
Projections also suggest a decline in Russian oil exports in the subsequent year, based on Russia’s socio-economic development forecast up to 2026. However, the cost of Russian oil is predicted to increase in 2024.
The economy ministry hasn’t provided any comments upon request.
The cost of Russian pipeline gas remains undisclosed by both the government and energy conglomerate Gazprom since its initiation in 2019.
Yet, analysts have long believed its price to be significantly below what’s offered to Europe. The report indicates that due to the tensions in Ukraine affecting trade, the gas price for Turkey and Europe — which both experienced a sharp drop in Russian imports — will decrease this year to $501.6 per 1,000 cubic meters, dropping further to $481.7 in 2024 from its 2022 price of $983.8.
In contrast, the prices for China are marked at $297.3 for 2023 and $271.6 for 2024.
In the winter of 2022/2023, Europe managed to avert a potential energy shortage by curbing its energy use and seeking alternative suppliers, like those of seaborne liquefied natural gas.
Russian crude oil exports are projected to dip this year to 247 million tons (equivalent to 4.96 million barrels per day) from 248.2 million tons in 2022. This figure is projected to drop further to 240 million tons the next year but then bounce back to 247 million tons in 2025.
Russian Deputy Prime Minister Alexander Novak has announced that Russia plans to continue its voluntary cut in oil exports by 300,000 barrels daily through the end of the year to ensure market stability.
As per the report, the export price of Russian oil is pegged at $71.3 per barrel, in comparison to $79.6 in 2022 and an expected $63.4 this year. This price exceeds the $60 cap imposed by Western nations
