Putin inaugurates a major gas field in Siberia to supply China

Russian President Vladimir Putin has officially launched the exploitation of the Kovykta gas field, a vast deposit located in Siberia.

Share:

Russian President Vladimir Putin has officially launched the exploitation of the Kovykta gas field, a vast deposit located in Siberia which should allow to increase exports to China in the middle of the crisis between Moscow and the West.

“We are launching the Kovykta field, the largest in eastern Siberia (…) Start work,” Putin said at a ceremony broadcast by live video conference on television. The exploitation of this deposit will start “a real development dynamic” and signals that “a powerful and strategic industrial complex is being created in the east of Russia”, he added.

Moreover, Mr. Putin continued, the operation of this site will make it possible to “ensure the reliable delivery of gas (…) both to Russian companies and to our foreign partners”. This gas field presents “new opportunities for economic and social development, as well as new opportunities for our growing exports,” said the head of the Russian giant Gazprom, Alexei Miller.

The Kovykta field, located near Lake Baikal in Siberia, is to supply the Siberian Force 1 pipeline, which since late 2019 connects the Chaiandina field (Yakutia) to northeast China. Russia has been trying for several years to increase its gas supplies to the energy-intensive Chinese economy and has accelerated this move in recent months.

Indeed, since the launch of its military offensive against Ukraine, Moscow has been targeted by Western economic sanctions and has sharply reduced its hydrocarbon deliveries to Europe, turning to Asia to compensate. The Russian authorities want to increase their deliveries to 20 billion cubic meters of gas each year, in particular by drawing on the reserves of the Kovykta field.

Russia is also planning to build the Siberian Force 2 pipeline from 2024 to supply China via Mongolia, another sign that Russia’s energy strategy has indeed taken a turn to the East.

Hungarian Minister of Foreign Affairs and Trade Peter Szijjarto states Budapest will block any European ban on Russian hydrocarbon imports, stressing the impact on household energy costs.
The International Energy Agency anticipates an acceleration in global liquefied natural gas trade, driven by major new projects in North America, while demand in Asia remains weak.
Spanish group Naturgy reports an unprecedented net profit, driven by rising electricity prices and increased use of its gas-fired power plants since the major Iberian grid outage.
The Hague court has authorised the release of Gazprom’s shares in Wintershall Noordzee, following a judicial decision after several months of legal proceedings involving Ukrainian companies.
SSE plc invests up to €300mn ($326mn) in a new 170MW power plant in County Meath, aiming to ensure energy security and support the growing demand on Ireland's power grid.
The Egyptian government has paid over $1 billion to oil majors to secure natural gas production and restore international investor confidence.
CMA CGM and TotalEnergies announce a strategic partnership with the creation of a joint venture to operate a liquefied natural gas (LNG) bunkering vessel with a capacity of 20,000 m³, based in Rotterdam.
The amount of gas flared globally surged to 151 billion cubic meters, the highest level in nearly twenty years, resulting in losses estimated at 63 billion USD and raising concerns for energy security.
The Sharjah Electricity, Water and Gas Authority has completed a natural gas network in Al Hamriyah, spanning over 89 kilometres at a total cost of $3.81mn.
The European ban on fuels refined from Russian crude is reshaping import flows, adding pressure to already low inventories and triggering an immediate diesel price rally.
LNG trading volumes in the Asia-Pacific region reached 1.24 million tonnes, driven by summer demand and rising participation, despite a 21% monthly decline linked to geopolitical uncertainty.
Subsea 7 S.A. has announced a major contract signed with Equinor for the engineering and installation of subsea infrastructure at the Fram Sør gas field, located in the North Sea off the coast of Norway.
The Republic of Congo and Eni confirm the expansion of the Congo LNG project and multiply industrial initiatives to strengthen energy supply and strategic sectors.
Italian group Eni signs a twenty-year liquefied natural gas supply contract with US-based Venture Global, covering two mn tonnes per year and marking a first for the company from the United States.
The discovery of the Gajajeira field marks a major step for Angola, strengthening its natural gas development strategy and diversifying national energy resources in a context of sector transition.
The Voskhod vessel, under US sanctions, docked at the Arctic LNG 2 plant in Russia, marking the second visit by a sanctioned ship to the site this year, according to maritime tracking data.
Japan has urgently secured several additional cargoes of liquefied natural gas from the United States to avert an imminent electricity supply shortage caused by rapidly declining national reserves expected at the end of July.
The European Commission has unveiled a proposal to prohibit the import of Russian gas into the Union, sparking intense debate on its feasibility, contractual impact and consequences for supply security among several Member States.
CNOOC Limited announces the discovery of a significant oil and gas reservoir in the buried hills of the Beibu Gulf, opening new opportunities for shallow water exploration off the coast of China.
TotalEnergies’ Mozambique LNG gas project is at the centre of a legal challenge in Washington, following the approval of a $4.7 bn loan by the US Exim Bank, amid security concerns and opposition from civil society groups.