Gazprom to stimulate underground gas storage in China

Russian energy giant Gazprom announced its plans to promote underground gas storage facilities development in China, which according to Gazprom’s Head for Underground Gas Storage Sergei Khan’s interview to Gazprom Magazine, will help avoid an increase in investment costs of Gazprom’s gas delivery to China, RIA Novosti reported on June 2.

“High level of day to day fluctuations of Russian gas delivery to China results from insufficient development of underground gas storage facilities in China. This can lead to increased investment costs for Gazprom in implementation of the export project and later to a non-optimal operation of the future gas pipe. This is why it’s so important to promote development of underground gas storage facilities in China,” said Khan.

The expert also added that there are depleted hydrocarbon deposits in North East China which can facilitate the underground gas storage development.

Copyright: RIA Novosti, 2014