Russia is placing its hopes on a rising gas demand in the Asia-Pacific region, particularly in China, to make up for the shortfall from a decrease in demand from the EU. But China has made it clear that it is unwilling to pay the high prices that Russia charges Europe, and has itself intensified diversification of its gas imports.

RUSSIA plans to increase gas exports to Asia from seven per cent in 2010 to 20 per cent by 2030. But, according to the International Energy Agency (IEA), it will need to find more destinations for gas exports if it is to make up the shortfall of exports to the EU, where demand is likely to be less than predicted under Russia’s energy strategy.

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Dr. Frank Umbach
Development of China’s unconventional gas is more likely to be gradual and evolutionary rather than revolutionary as in the US
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