MOSCOW (Reuters) – The price for the Russian pipeline gas for China is expected to be steadily declining in next few years, and is seen much lower than Moscow is selling to Europe, a Russian government document, seen by Reuters on Friday, shows.
Oil exports from Russia are also seen declining next year, according to the forecast of Russia’s socio-economic development forecast until 2026, while the price of Russian oil is seen rising in 2024.
The economy ministry did not replied to a request for comment.
The price of Russian pipeline gas has not been made public by the government or the energy giant Gazprom since the start of supplies in 2019, while analysts have long suspected that it was much lower than the one Russia sells at to Europe.
According to the document, the Russian pipeline gas price for Turkey and Europe — which have seen a drastic decline in imports of commodities from Russia due to Moscow’s actions in Ukraine — is expected to decline this year to $501.6 per 1,000 cubic metres and $481.7 in 2024 from $983.8 in 2022.
For China, it stands at $297.3 and $271.6 in 2023 and 2024 respectively.
Europe managed to overcome a feared energy crunch in the winter of 2022/2023 due to its efforts to reduce energy consumption and find other suppliers, such as sellers of seaborne liquefied natural gas.
Russian crude oil exports are also seen declining this year to 247 million tons (4.96 million barrels per day) from 248.2 million tons in 2022. It is expected to fall further to 240 million tons next year before recovering back to 247 million tons in 2025.
Russian Deputy Prime Minister Alexander Novak said Russia will extend its voluntary reduction in oil exports by 300,000 barrels per day until the end of the year “to maintain stability and balance” on oil markets.
The document showed that the exporting price of Russian oil is seen at $71.3 per barrel comparing to $79.6 in 2022 and $63.4 expected this year, above the price cap of $60 imposed by the West.
(Reporting by Reuters)