Gas pipeline talks Northeast Asia and Asia in the whole is increasingly becoming important for Russia’s energy market. Russia’s natural gas and oil giant Gazprom has been holding talks on energy supplies with China for the past ten years now. China is one of the strategic consumers of natural gas and oil for Russia, but it is South Korea’s in Gazprom’s influence in the region is growing now. “The biggest areas of interest in Asia for Gazprom are China and India, but the negotiations with China has been going on for years now and yet there is no signed contract. Therefore, Gazprom will develop its cooperation with other Asian countries, such as Singapore and South Korea,” Ildar Davletshin, oil and gas analyst at Renaissance Capital told The Seoul Times. According to Davletshin, Singapore is a partner of Gaprom in the fields of marketing and trading of LNG, while Korea is a consumer with a growing economy that needs a lot of gas and oil supplies now. The fast-growing market in Asia is beneficial for Gazprom, since the European market is slowly assigning Russia’s oil and gas giant to the second plan. “Asian market seems to be promising for Gazprom, which is beginning to lose markets in Europe, so it makes sense strategically to diversify,” Ekaterina Rodina, oil and gas analyst at VTB Capital, told The Seoul Times. Rodina assured that the supplies of natural gas from Russia will increase, if the pipeline is constructed. North Korea’s interest and peace at the Korean peninsula As Russia’s foreign minister Sergei Lavrov announced after the talks with South Korea held in Moscow, that there is an oral agreement between Pyongyang and Moscow on the road map for a new gas pipeline. North Korea said yes to the construction of the pipeline between Russian Far East and its southern neighbor. It will become more beneficial for both countries at the Korean peninsula to have this pipeline built soon. “The prices for the gas import will decrease dramatically, while delivery time, stability and mobility will increase,” Rodina of VTB Capital said. North Korea is not a big gas or oil consumer that is why the experts say it will have other benefits, such as transit fees and that the project may bring more peace to the peninsula.
“Often the construction of pipelines involves the third parties. Gazprom already has had such experience with Belarus and Ukraine. We can say that the gas transit through the North Korean territory will have a political significance and bring more peace to the region,” Ildar Davletshin said. “The role of gas in the energy markets of Asia is becoming very important in the contrast to the oil market. Gas will play a significant role in the region in the future,” Davletshin said.
"Wooridul, Korea's Best Spinal Surgery Clinic"
S. Korea: Growing Medical Tourism Destination
Nuclear Power to Steadily Grow in the Future
Russia Signs Deal with S. Korea, Singapore ...
18th Korean Culture Festival Held in Moscow
S. Korean Director Park Jung-Bum Wins "Best ...
Lidia Okorokova serves as Moscow Correspondent for The Seoul Times. Previously she worked for the Moscow News, the Moscow Times, and the “Fusion” magazine in Dublin. She was a member of FEJS (Federation of European Journalism Students). She majored in linguistics and translations at Southern Federal University in Russia and received BA degree in journalism at Griffith College in Dublin, Ireland.
The Seoul Times
Shinheungro 25-gil 2-6
Yongsan-gu, Seoul, Korea
Office: 82-10-6606-6188 Email:firstname.lastname@example.org
Copyrights 2000 The Seoul Times Company ST Banner Exchange