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Russia's oil and gas export to Northeast Asia

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Russia has been deprived of the chance of becoming a major oil and gas supply source for the Northeast Asian region due to the combination of several factors, in particular by the absence of pipeline infrastructure in the area. Moscow made its first significant decision to construct an energy transportation infrastructure development by 2008, even though it is only the first stage of the 4,000 km long distance pipeline. If the development is made as planned, the Northeast Asian region is set to witness a massive crude oil flow from East Siberia and a sizable LNG export from the Sakhalin Islands before the end of this decade. The Moscow authority is supposed to make a final decision on the long distance natural gas pipeline before the end of 2005. If timing of the supply of pipeline gas to Bohai Bay areas is missed and consequently a massive LNG supply is arranged for North China, a significant delay of pipeline gas introduction to the Northeast Asian region will be inevitable and the price may have to be borne by the region's LNG consumers.

Document Type: Research Article


Publication date: November 1, 2005

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