Gazprom Surpasses Turkmenistan, Emerges as China's Top Pipeline Gas Supplier

In February 2024, Gazprom emerged as the leading supplier of pipeline gas to China, surpassing longtime leader Turkmenistan. According to data from the General Customs Administration of China, Gazprom exported 2.5 billion cubic meters of gas to China, while Turkmenistan supplied 2.4 billion cubic meters. China's total pipeline gas imports reached 5.346 billion cubic meters, an increase of 17% compared to 2023. Gazprom's achievement marks a significant shift in the Chinese gas market, as the company solidifies its position as the primary source of pipeline gas for the country.

Gazprom Emerges as Dominant Pipeline Gas Supplier to China, Surpassing Turkmenistan

Beijing, China - In a significant milestone, Gazprom has ascended to the position of the predominant pipeline gas supplier to China in February 2024. This achievement marks a pivotal shift in the Chinese energy landscape, as Gazprom has now surpassed Turkmenistan, the long-standing industry leader.

This momentous development is substantiated by data meticulously compiled by the General Customs Administration (GCA) of the People's Republic of China. The data unequivocally demonstrates that Gazprom exported an impressive 2.5 billion cubic meters (bcm) of gas to China during February 2024, a figure that eclipses the 2.4 bcm supplied by Turkmenistan.

This surge in pipeline gas deliveries by Gazprom aligns with China's unwavering efforts to diversify its energy sources. Over the past year, Russia has consistently maintained its position as the preeminent supplier of both pipeline gas and liquefied natural gas (LNG) to the Chinese market, outpacing Turkmenistan and Australia (LNG).

In addition to Gazprom's impressive pipeline gas exports, LNG imports by China have also witnessed a substantial rise in February 2024. Imports surged by a remarkable 24% to 6.648 million tons, equivalent to 8.645 billion cubic meters. This unprecedented level of LNG imports has propelled China to new heights, establishing a record for February LNG imports in the nation's economic history.

Australia, Malaysia, Qatar, Russia, Qatar, and the United States currently serve as the primary suppliers of LNG to China.

Gazprom's emergence as the leading pipeline gas supplier to China has been attributed, in part, to the historic daily gas supply record set by the company in early January. Through the Power of Siberia pipeline, Gazprom commenced gas deliveries to China under a newly established contract for 2024, setting a new benchmark for daily pipeline gas exports to Chinese consumers.

The strategic partnership between Russia and China in the energy sector has been further bolstered by the recent announcement that the two nations have significantly reduced their reliance on the US dollar in bilateral trade. This move underscores the growing economic ties between the two superpowers and their shared commitment to energy security.

China's burgeoning energy needs, coupled with its ambitious green energy initiatives, have presented lucrative opportunities for gas suppliers like Gazprom. The company is well-positioned to continue expanding its market share in China, further cementing its position as a key player in the global energy landscape.

Industry experts anticipate that the shift in market dynamics witnessed in February 2024 will have far-reaching implications for the future of energy supply in China. As Gazprom strengthens its foothold in the Chinese market, it is expected to further enhance its competitive advantage and play an increasingly influential role in shaping the nation's energy strategy.