Gazprom working on diversification of supplies to East for 20 years, this is not spontaneous transition - deputy CEO Aksyutin

ST.PETERSBURG. Sept 15 (Interfax) - Gazprom has been engaged in diversification of gas supplies to eastern countries for twenty years, and this work cannot be called a spontaneous U-turn, deputy CEO Oleg Aksyutin said during the plenary session of the St. Petersburg International Gas Forum-2022.

"Outside observers sometimes talk about a U-turn in the Russian economy and the gas industry in particular. Actually, the word U-turn implies a spontaneous decision. I think it is not very correct to use it in this context. Gazprom was appointed as the coordinator of the eastern gas programme back in 2002. Thus, diversification of activities in the eastern direction has been going on for two decades," Aksyutin said.

Diversification of supplies to the East is due to the growing demand of countries in the region for pipeline gas, the executive said.

"From 2011 to 2021, the share of the Asia-Pacific region in global gas consumption increased from 19% to 23%. The largest increase in the share of natural gas consumption occurred in China: during this time it more than doubled from 4% to 9%," he said.

India is now another substantial importer of gas in the region, the deputy CEO said.

Overall, according to Aksyutin, the demand for gas in the Asia-Pacific region may grow by more than 0.5 trillion cubic meters by 2040, or 70% more than in 2020.

"The center of the global gas industry is shifting to the East. Natural gas is becoming an increasingly sought-after fuel in the Asian region, which is taking over world leadership in industrial production. Largely due to this, the Russian gas industry will in any case confidently retain its leadership in the global energy markets," Aksyutin said, adding that in his opinion the role of natural gas in the global energy balance would continue to grow.