Gazprom Delighted By China Announcement Nat Gas Need To Soar By 150% In 6 Years

Tyler Durden's picture

It may comes as a surprise to many, if certainly not the country known as Gazpromia, that according to a government statement released on Wednesday, China will raise its natural gas supply to a whopping 420 ­billion cubic meters per year by 2020 on soaring demand due to urbanization, a government statement said on Wednesday. This compares roughly 168 bcm in gas used in 2013, which means somehow China hopes to boost gas production by over 150% in just 6 years.

The increased supply will ­cater to the rising demand for natural gas in people's daily lives, schools, nursing homes, home heating, as well as in buses and taxis, according to a statement published on the central government's website.

According to Global Times, the supply increase is also driven by the nation's efforts to mitigate air pollution stemming from an over-reliance on coal, the statement said. Sounds familiar - only problem is that the same narrative, used in the US time and time again, has achieved virtually nothing in fixing said over-reliance on coal.

Global Times adds that tTo expand natural gas production, investment in gas storage facilities as well as their construction and operation will be open to all market players, the statement said.

And the best news for gas E&Ps: companies will also have the option to issue bonds to raise capital for the construction of storage facilities. The government will offer favorable land policies for ­sto­rage facility projects, the statement said.

China's total consumption of natural gas rose 13.9 percent year-on-year to 167.6 billion cubic meters in 2013, according to a report published on January 15 by the Economic and Technology Research Institute of the China National Petroleum Corp.


The higher consumption led to a 25 percent increase in imports, totaling 53 billion cubic meters last year, 31.6 percent of the total consumption.


Supplies will continue to be tight this year, the report said, predicting that the natural gas consumption would expand 11 percent this year to 186 cubic meters.

And the well-known punchline to Zero Hedge readers: China and Russia aim to wrap up a 10-year series of talks about Russian gas supplies before Russian President Vladimir Putin visits China in May, Reuters reported on April 14.

Which is also the key: Russia knows very well that when it comes to organic growth, China will be woefully unprepared to boost its own production nearly threefold in just over five years. Which is where Gazprom and Putin's holy grail deal come in. Because while Russia is happy to sit on the sidelines as China pretends its own producers can strike gold, or in this case gas, it knows they won't. And it will be more than happy to provide all the gas shortfall China has - in the process joining China in the hip in a symbiotic relationship that solidifies the most important post-New Normal concept we first dubbed the Gas-O-Yuan.

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IridiumRebel's picture

China playing both sides. Sun Tsu anyone?

Kirk2NCC1701's picture

LOL.  China plays only ONE side:  China's side.  Have done so for thousands of years.

Hedge accordingly.

BLOTTO's picture

'China will raise its natural gas supply to a whopping 420 ­billion cubic meters per year by 2020'...


Hmmm, i wonder what country they are going to 'raise' it from? eh?


Come get it. Lock n' Load

hungarianboy's picture

Eastern Ukrainians enraged by the Kiev military operation have used an RT video report to tell first-hand details of a Ukrainian army attack in Slavyansk. The Ukrainian troops raided a checkpoint and took all the food and medicine, they said.

Winston of Oceania's picture

Why would you have food and medicine at a checkpoint that no longer exists?

MeMadMax's picture

Better than Coal I guess....



Seer's picture

Because the "unplugging incubators" line no longer works?

BaBaBouy's picture

Our Planet Is Doomed... Humanity Has To STOP Reproducing At Such Fucking Insane Rate...

BLOTTO's picture

Picking the pineapple and anchovies off the pizza is useless when the dough is rotten to the core.


We need to 'sever the beasts head'....not 100,000,000 masses. Otherwise, we havent done FUCK all. The beast doesnt care if its in control of 1,000 people or 1,000,000,000.


BaBaBouy's picture

MAybe Everyone Can Have An Acre Of Land On The Planet...

Are You Raedy To Farm???

Do You Want Yours In The Sahara, India, Or The Arctic???

Yep, Everyone Can Have An Acre Of Land.

PS... I Just Heard Much Of JAPAN's Rice Is Contaminated, Heavy Metals Cadmium In The Fields...
Food Production Is Headed Up Shits-Creek... Good Luck With All The Newbies.

macholatte's picture


No worries. I just heard Monsanto has a genetically modified strain of rice that's resistant to nuclear radiation & heavy metal music, votes Progressive several times at every election and always watches American Idol.


Smegley Wanxalot's picture

... and BaBaBouy will be first in line to stop fucking!

UselessEater's picture

celibacy for all but TPTB will fix earth... or TPTB just stop fucking with every nation on every continent and its farmers will feed us well on the existing cleared land whilst our population follows a natural decline in the rate of growth

the myth of over population:

Truth is every man, woman, & child in the whole world could have about 1 acres of land to themselves & it would all fit into a land mass the size of North America, with the rest of the world completely unoccupied.

Flakmeister's picture

And if all they did was farm that acre, we might be fine...

In reality, there is about 0.25 ha of arable land per capita, that corresponds to about 1/2 acre...

Lets see you support yourself off of that...

Take your bullshit sophistries elsewhere...


UselessEater's picture

if you and Gates, His Royal Virus and Gore etc could just go the way you want the rest of us to go and just do it quickly and quietly that would free up half the planet already


I have continents to roam


UselessEater's picture

dipshit its an illustration of the land available on the planet vs population

now fuck off malthusian Monsanto git

stop following me like a stalker

someone else on ZH must want you

Flakmeister's picture

Quit saying stupid shit and you have a deal....

Element's picture

When it can't win, which is very often, it always and invariably resorts to smear.


rubiconsolutions's picture

"Truth is every man, woman, & child in the whole world could have about 1 acres of land to themselves & it would all fit into a land mass the size of North America, with the rest of the world completely unoccupied."

Truth is a very small segment, say around 1% would soon find a way to reduce that one acre to one square meter by creating debt based money and enticing the people to mortgage their futures and their children's futures. Then they would seize the unoccupied land by force and plunder the resources until.....

...Oh wait, isn't that what has already happened? Nice try though. Now please check back into Disneyland and hop on "It's A Small World".

Bunders's picture

"Our Planet Is Doomed... Humanity Has To STOP Reproducing At Such Fucking Insane Rate..."

Or come up with a better plan for the provision of food, shelter, energy, education and opportunity to however many billions of people earth ends up with. What population number is sustainable and how to get the population of the world to agree to target it? Assuming it results in a mind boggling queue of people waiting for their societally sanctioned opportunity to reproduce, how to manage that queue? Would people end up pairing up on the basis of their position in the queue rather than any other consideration?

If you ran an opinion poll today giving people the choice of global war killing billions and the system continuing as it has so far untill the next global war again e.t.c. or the above queue to breed scenario which would they choose? If you are POTUS and you know that Americans generally prefer the scorched earth recurring scenario but the rest of the world favours the queue to breed scenario then what? Act in the name of democracy in your own country and nuke the world or say democracy be damned and aim for maximum population?

Smegley Wanxalot's picture

They will get it by attaching environmentally friendly UN-approved fartpacks to cows to capture the natural gasses and store them for future green purposes.

Who needs fracking when you can harness cowfarts?

UselessEater's picture

these cow farts?

Published on Dec 3, 2012 At COP 18 in Doha, Qatar, CFACT asked the delegates to the UN Climate Change Conference if they would be willing to wear a carbon capture mask that filters out the carbon dioxide (CO2) they exhale. You'd be surprised how many agreed to this ridiculous proposal.

Element's picture

Actually, I wouldn't be surprised at all.

Dewey Cheatum Howe's picture

Yep Chinese are more like 5 or 6 faced. Vice has always been the Chinese biggest weakness though...

RougeUnderwriter's picture

I'm sure they will be happy when the UKee's blow up the pipelines leading into Europe from Russia

sessinpo's picture

RougeUnderwriter       I'm sure they will be happy when the UKee's blow up the pipelines leading into Europe from Russia


That would be shooting oneself in the foot or cuting the nose of despite the face. Good thinking.

youngman's picture

China and Russia think alike...they are buddies..they both do not like the West...and they both want more control of the world...

UselessEater's picture

correct and it should be noted


buzzsaw99's picture

imo they aren't buddies and don't trust or even like each other and never have. what they do have in common is hatred of the overbearing officious pompous over-reaching imperial retarded usa ptb.

Element's picture

Exactly, the Chinese and Russian strategic partnership has always been about strategic opportunism, and always subject to review. No one in their right mind would trust China and no one paying attention would trust Putin. The common factor is the US is not only profoundly dishonest and untrustworthy, it is also frighteningly stupid and prone to both severe under-reaction, for which they then over-compensate with considerable over-reaction interspersed with copious circus behavior (clowns, then lots of clowns, then way too many clowns, etc).

Flakmeister's picture

In reality there are natural enemies with a long history of mutual distrust...

Winston of Oceania's picture

China has claims to a great deal of Russian held territory, they just don't talk about it, for now...

CrabNuggetOne's picture

I'm sure it's nearer the truth to say that they want you lot in the U.S of Murder to have less influence i.e. fuck off and leave the rest of us in peace!

"..they both don't like the west..", awe diddums, don't the other kids like you? Grow up you juvenile RETARD.

Hongcha's picture

Long and strong.

spekulatn's picture

Green arrow for the picture RougeUnderwriter.

Kirk2NCC1701's picture

They'd do more to "stir the pot", if they announced what currency they'll be using.

E.g. "Gas and oil deal to be settled in local currency, not USD".  Or is that TMI (too much info) for our MSM?

ParkAveFlasher's picture

OK - so China demand growth based on rapid urbanization, right, got it, sure. 

Seer's picture

Actually, this may just be for heating those empty ghost cities: can't leave them w/o heat/AC lest they start molding...

ParkAveFlasher's picture

Imagine being that one janitor, in the whole city, responsible for keeping the heat on in all those buildings. 

Seer's picture

And then going home and seeing everyone around you shiver...  Maybe best to not tell others where your source of revenue comes from!

Smegley Wanxalot's picture

Obama to announce sactions against China for crossing a red line in 5.. 4.. 3.. 2,928,428,099.. 2,928,428,098.. 2,928,428,097....

Itchy and Scratchy's picture

And Vlad's not takin' USD's!

sessinpo's picture

Winston of Oceania         What will he take?


What won't he take? And better yet, why does it matter. Trade one corrupt government for another. The previous government only broke your left leg. The new government will save your left leg but will break your right leg. Congrats.

Hongcha's picture

Sold my USLV on the pop, as I do not believe this is going to escalate and if PMs are going up based on solely on the drumbeats of Woar, they are doomed to a new low because we are not going to get it.

Flakmeister's picture

Gazprom better start building those pipelines soon then....

Seer's picture

But won't Gazprom worry about China's abiotic oil? </sarc>

This is a perfect of how the strategy of perpetual growth on a finite planet leads to mental decay.  It's like, well, um, we'll worry about where the energy is to come from later, we've got to BUILD, BUILD, BUILD now! and, technology is sure to save us, but pulling all that oil from the middle of the earth, which, as you know, is all that's really inside the earth (the oil companies are all holding out on us), OK, That and Unicorns and Skittles! (and some chewy caramel)

And for the big trick watch them try and pull some measly 3% growth after they've hit their 150% ramp.  Does anyone understand math (exponential function) anymore?

Dr. Destructo's picture

You don't need math to understand that the use of fossil fuels have allowed people to expand beyond the capacity of their local environment, and can only be sustained as long as the fossil fuels keep a burnin'. Take away the fossil fuels and you'll see a massive decline in the population since goods and services can no longer be transported over vast distances quickly. Say goodbye to industrial farming (shitty concept anyway) and green tech, and say hello to our ancestrial roots before the industrial revolution came about. Maybe when all this shit happens the assholes in the produce aisle will finally know what a horseradish looks like without going on the interbutts to find out.