23 Mar 2022 14:13

Russia talking with Asia about additional supplies of energy resources, volumes would come from other directions

MOSCOW. March 23 (Interfax) - Russia is discussing with its Asian partners the possibility of additional supplies of energy resources if needed, Deputy Prime Minister Alexander Novak said in the State Duma.

Novak also said that redirecting supplies does not happen all at once, and that there are not any extra resources without large investments.

An increase in oil supplies in one direction would come from volumes in another one, Novak specified.

"We now have planned deliveries of oil and petroleum products in line with previously concluded contracts both in the European part and other countries, the Asia-Pacific region. Our supplies are diversified all over the world, of course, the lion's share is Europe-Asia, deliveries are made to the Middle East, Latin America," Novak said.

"As for diversification - this is not a task for today, the government began implementing this long ago, and, as you know, we are actively developing infrastructure, both gas and oil pipelines," he also said.

"To date, existing contracts are being implemented, but of course we are talking with our Asian partners about the possibility of additional volumes for Asian markets if there is such a need. And I am sure that the market that exists in the Asia-Pacific region will, among others, find a place for deliveries from Russia," the deputy prime minister said.

"It's a difficult problem - the reorientation of markets. The markets, despite the fact that they are quite large - 100 million barrels of oil a day are consumed in the world, they are quite balanced. If, for example, certain resources are redirected from one market to another, this means a change in logistics chains, settlement systems, and supplies, this is not done in one day. Therefore, if there is a loss in one place, there must be a gain in another, because there are no excess resources in the energy sector today," Novak said.

The shortage of oil in the world market is about 1 million bpd, he said. "And it is impossible to deliver this additional [volume] in the short term, without major investments, without the implementation of major field projects. Therefore, of course, if there is a reorientation of the markets, there will be a substitution of some areas for others, but the overall balance will not change in the world markets. This also applies to the oil and gas market," he specified.