The head of Gazprom explained why gas is cheaper for China than for Europe

The head of Gazprom explained the lower gas price for China by the fact that fuel supplies to The PRC is less expensive due to the shorter transport shoulder.

"You know, purely geographically, the price of gas for China will always be lower," Alexey Miller said, RIA Novosti reports.

The head of Gazprom noted that China receives gas from the fields of Eastern Siberia, and Europe — from the fields of Western Siberia.

"The deposits in Western Siberia are located much further than the deposits of Eastern Siberia to the border of Russia and China or Russia and Mongolia. Accordingly, the transport costs for the supply of gas to the Chinese market are significantly lower," said Alexey Miller.

Earlier, he announced the signing of a binding memorandum on the second gas pipeline to China, the Power of Siberia — 2, and an increase in the capacity of the Far Eastern route, which will be launched in a few years — from 10 to 12 billion cubic meters.

Europe has always been a premium market for Gazprom. However, due to sanctions and counter-sanctions, supplies have decreased fivefold. If Russian gas comes to China with a price link to oil, then to EU countries — to the cost of fuel on European stock exchanges. In addition, the price also takes into account transportation through European countries, which is paid for by Gazprom.