Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Tuesday, 25 June 18:22 (GMT -05:00)



Business And Politics News

China Doesn’t Need Russian Gas and Pipelines


Don’t you remember how a couple of years ago Gazprom cut natural gas supplies to Ukraine a number of times. By the way, Ukraine alone used to buy 55 billion cubic meters of natural gas back then. Now Ukraine buys no natural gas form Russia at all. Apparently, Moscow keeps on looking for other outlets. There has been a lot of buzz about China as a new big outlet for Russian natural gas and crude oil. It turns out that two new pipelines should have transferred to China some 38 billion cubic meters of natural gas every year. Yet, this was the maximum amount, and it couldn’t clearly make up for the export of natural gas to Ukraine.

 

 

 

 
Here is another surprise. Most likely, China is going to refuse the extra import of Russian natural gas. If that’s the case, those pipelines will become idle and useless.
 
Gazprom’s Wishful Thinking
 
According to mass media, the gas talks between Russia and China have come to a deadlock. In particular, China decided to take a timeout in order to better estimate the future consumption of natural gas in the country. Indeed, the Chinese economy consumes a whole lot of natural gas. However, there are many alternatives to Russian natural gas, so china isn’t short of offers. This means that China isn’t clearly going to buy excessive amount of gas and wants to buy it as cheap as possible.
 
And apparently, China is not another Ukraine to let Russia dictate the rules in the bilateral trade relations. That’s why some plans are crashing. At this point, Russia has already lost the entire Ukrainian market and most European markets as well. That is why Russian propaganda has been focused on advocating the idea that China can become a huge outlet for Russia’s export of crude oil and natural gas, easily making up for Ukrainian and EU outlets.
 
The first pipeline is designed to transfer 30 billion cubic feet of natural gas to China, and the second one is intended for 8 billion cubic feet of natural gas. However, now even the fate of the entire deal is questioned. Now that China has started questioning the necessity of extra supplies of Russian natural gas, Russia has now figured out that they are not the only one who can go back on their promises.
 
Russia has invested tons of money in the pipelines. However, chances are some of them are going to end up being a waste of money. The Chinese have their own plans and they will never let anyone forget who is the one paying. Today China consumes 206 billion cubic feet of natural gas a year. By 2020, the consumption is expected to grow all the way up to 260 cubic feet. However, it would be not too smart for Gazprom to think that Russia is going to be the only one covering the increasing demand in China. However, Gazprom dare think so and decided to implement a big-scale project ­– $400 billion. This could have been a really good investment but for China’s true plans making it a really risky game. The thing is, China produces a certain amount of gas to cover a certain part of the local needs. Yet, the local production seems to be booming.
 

 

On top of that, China decided to catch at the chance offered by the USA – liquefied natural gas and shale gas. Also they are buying cheap gas in Turkmenistan. China is investing in the natural gas industry. While Russian projects are not ready yet, if the Chinese decide to cut down on their investments and go back on some of their gas deals, the Russian projects are probably going to end up being a scapegoat. That’s what Gazprom is in a hurry trying to build those pipelines as fast as possible.

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

US-China Trade Conflict May Trigger Another Global Financial Crisis

Beijing and Washington are one step away from escalating their trade conflict. The confrontation may harm the entire global economy. Some experts belive that the trade war may also trigger another global financial crisis. At this point, the parties seem to have come to a standstill, which is why the chances of the conflict escalating into a move severe trade war are still growing.

Publication date: 18 June 10:18 AM

WTO Lowers Global Trade Growth Forecast

 WTO experts are reported to have revised their forecast for the pace of global trade growth. The renewed forecast names figures below the previous ones - 2,6% against 3,7%. It's also interesting to note that the previous forecast for 2018 failed to match the actual figures.

 
Publication date: 19 May 02:58 AM

How to Protect Investment Capital in 2019?

Existing political and economic risks are pushing international investors into thinking about the security of their investment capital. Chasing big profits becomes secondary to this kind of security.

Publication date: 31 March 11:26 AM

EU Comes Up With Workaround to US Sanctions

The representatives of Germany, France, and the UK have registered a company to let it trade with Iran despite the US sanctions. The company still needs to be approved by 28 EU members.

Publication date: 31 March 02:33 AM

Beijing and Washington are getting ready for the final talks

Publication date: 17 February 08:58 AM

US-China Trade War Reaches Next Level

Washington and Beijing have announced a new round of talks. International experts say that the trade war is indeed going to a whole new level.
Publication date: 08 January 10:17 AM

Roma May Drag Moscow and Brussels Into Major Financial Crisis

International experts are trying to evaluate the situation in Italy. Some of them are convinced that the EU is not going to save the Italian populists. For those of you who don't know the details, in October, the European Commission rejected the draft budget devised by the new Italian government. This means that the draft budget needs to be improved in order to approved.
Publication date: 19 December 11:48 AM

USA Strikes Iran Again

As you probably know, a couple of weeks ago, the United States imposed a new round of sanctions on Iran. International experts say that the package includes 700 new points, including an embargo on the import of crude oil from Iran. It's interesting to note that the sanctions will touch upon some other states as well. Some temporary exception are said to have been maid for 8 partners of the USA.
Publication date: 29 November 12:04 PM

Trump Offers Putin to Compete for Multi-Polar World, Eggert Says

According to Konstantin Eggert, a Russian journalist writing for Deutsche Welle, Donald Trump is offering his Vladimir Putin to compete for a multi-polar world, but on American terms. In particular, he highlights the fact that many international experts started panicking when finding out that the USA had withdrawn from the missile control treaty with Russia. They say that this is the end of the strategic partnership between the United States ans Russia and the disruption of the nuclear arms control system created decades ago.

Publication date: 29 November 11:07 AM

The world is on the verge of another global race

International experts are commenting on the events taking place over the last few years. In particular, President and CEO of Atlantic Council Frederik Kempe believes that we are nearing another race between the world's biggest superpowers.
Publication date: 07 November 09:02 AM