Deposits geographically closer to Asian markets are a priority, according to the Minister of Natural Resources
Russia plans to boost geological exploration for hydrocarbons, including natural gas, in the Far East as it seeks to redirect energy exports from Europe to Asia amid Western sanctions, Natural Resources and Environment Minister Alexander Kozlov said on Tuesday.
In an interview with the Rossiya 24 TV channel, Kozlov stressed that boosting energy trade with Asia, and China in particular, would ensure Russia has a reliable market for its oil and gas.
“We have set ourselves the priority of geological prospecting and exploration and assistance in the search for mineral resources, in particular hydrocarbons, to get closer geographically to future consumers and transport infrastructures. For example, the Power of Siberia gas pipeline, the gas from which is transported to China. We made the decision to conduct geological exploration throughout Yakutia… so that there would be no [just] one, but more pipelines going in an easterly direction. Because it is a guaranteed income for our country, guaranteed sales to a major partner,said Kozlov.
Currently, Russia has only one gas pipeline through which gas is transported from Eastern Siberia to China, the powerhouse of Siberia. However, Russian energy giant Gazprom has been working on a second pipeline, the Power of Siberia 2, since 2020. The conduit is designed to connect Russian gas fields to China via Mongolia, and construction is expected to start in 2024.
According to the Ministry of Natural Resources, the redirection of domestic oil and gas trade to countries that have not joined Ukraine-related sanctions against Russia will lead to increased investment in the development of nearby mineral resource centers. friendly markets. However, the ministry points out that the sanctions have made the process difficult.
“The sanctions restrictions affected, among other things, exploration equipment. They have had a particularly tangible effect on offshore projects. Basement users are currently looking for a solution to these problems, both by buying [equipment] from friendly countries and developing their own in Russian production facilities. However, adjusting and stabilizing production capacities and import chains is not a one-year affair,“Warned the ministry, quoted by the Interfax news agency.
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