Heroes of Ukraine

«Market Leader» - news and previews making you rich.

Saturday, 24 February 17:48 (GMT -05:00)



Business And Politics News

China Doesn’t Need Russian Gas and Pipelines


Don’t you remember how a couple of years ago Gazprom cut natural gas supplies to Ukraine a number of times. By the way, Ukraine alone used to buy 55 billion cubic meters of natural gas back then. Now Ukraine buys no natural gas form Russia at all. Apparently, Moscow keeps on looking for other outlets. There has been a lot of buzz about China as a new big outlet for Russian natural gas and crude oil. It turns out that two new pipelines should have transferred to China some 38 billion cubic meters of natural gas every year. Yet, this was the maximum amount, and it couldn’t clearly make up for the export of natural gas to Ukraine.

 

 

 

 
Here is another surprise. Most likely, China is going to refuse the extra import of Russian natural gas. If that’s the case, those pipelines will become idle and useless.
 
Gazprom’s Wishful Thinking
 
According to mass media, the gas talks between Russia and China have come to a deadlock. In particular, China decided to take a timeout in order to better estimate the future consumption of natural gas in the country. Indeed, the Chinese economy consumes a whole lot of natural gas. However, there are many alternatives to Russian natural gas, so china isn’t short of offers. This means that China isn’t clearly going to buy excessive amount of gas and wants to buy it as cheap as possible.
 
And apparently, China is not another Ukraine to let Russia dictate the rules in the bilateral trade relations. That’s why some plans are crashing. At this point, Russia has already lost the entire Ukrainian market and most European markets as well. That is why Russian propaganda has been focused on advocating the idea that China can become a huge outlet for Russia’s export of crude oil and natural gas, easily making up for Ukrainian and EU outlets.
 
The first pipeline is designed to transfer 30 billion cubic feet of natural gas to China, and the second one is intended for 8 billion cubic feet of natural gas. However, now even the fate of the entire deal is questioned. Now that China has started questioning the necessity of extra supplies of Russian natural gas, Russia has now figured out that they are not the only one who can go back on their promises.
 
Russia has invested tons of money in the pipelines. However, chances are some of them are going to end up being a waste of money. The Chinese have their own plans and they will never let anyone forget who is the one paying. Today China consumes 206 billion cubic feet of natural gas a year. By 2020, the consumption is expected to grow all the way up to 260 cubic feet. However, it would be not too smart for Gazprom to think that Russia is going to be the only one covering the increasing demand in China. However, Gazprom dare think so and decided to implement a big-scale project ­– $400 billion. This could have been a really good investment but for China’s true plans making it a really risky game. The thing is, China produces a certain amount of gas to cover a certain part of the local needs. Yet, the local production seems to be booming.
 

 

On top of that, China decided to catch at the chance offered by the USA – liquefied natural gas and shale gas. Also they are buying cheap gas in Turkmenistan. China is investing in the natural gas industry. While Russian projects are not ready yet, if the Chinese decide to cut down on their investments and go back on some of their gas deals, the Russian projects are probably going to end up being a scapegoat. That’s what Gazprom is in a hurry trying to build those pipelines as fast as possible.

 

You are free to discuss this article here:   forum for traders and investors

 

Add to blog
Got a question? – Ask it here »
 

Any Brexit Scenario Will Damage the British Economy

In practice, there can be multiple Brexit scenarios, i.e. the scenarios of how the United Kingdom will exit the European Union. Experts say that almost any scenario will damage the British economy to some extent. Moreover, there will be some economic damage to both the UK, the USA, and the EU.

Publication date: 25 December 02:48 AM

The Era of Cheap Money from Central Banks is Over

According to two major investment banks – Citigroup and JPMorgan, the days of cheap money and low interest rates are nearly gone after almost 10 years since the last global crisis. They warn us that major central banks around the globe (including the ECB, for example) are going to start toughening their monetary policies in 2018 at the fastest pace in 12 years.

Publication date: 25 December 02:05 AM

Will Bitcoin Mining Leave the World without Electricity?

It seems like people have been obsessed with cryptocurrencies. While loading up on them like crazy, they seem to have forgotten that everything has a price. When it comes to mining cryptocurrencies, this is all about the growing deficit of electricity. The thing is that all those mining farms consume tons of energy. Maintaining that cryptocurrency infrastructure is rather energy-consuming as well since all of that requires really powerful and capacious hardware, which consumes big amounts of electricity.

Publication date: 04 December 01:04 AM

Brexit and Bank Capital Outflow

Since the Brexit referendum that took place in the United Kingdom last year, European banks have already withdrawn from the UK as much as 350 billion euros. That’s reported to be the official stats provided by the European Union, The Financial Times reports.

Publication date: 30 November 01:52 PM

Fed Will Raise Interest Rate 4 Times in 2018, Goldman Sachs Experts Predict

According to the experts working for Goldman Sachs, one of the largest investment banks in the world, the U.S. Federal Reserve is probably going to raise the key interest rate 4 times next year.

Publication date: 25 November 04:05 AM

Referendum In Catalonia May Hit Europe Harder Than Brexit

The possibility of Catalonia exiting from Spain is dangerous to the integrity of the European Union, even more dangerous than the Brexit. This is what The Daily Telegraph thinks on the matter.

 

Publication date: 01 October 04:58 AM

Trump Announced Revolutionary Tax Cuts for Americans

On Wednesday, September 27th, President Trump announced a tax reform. The thing is that Donald trump promised this tax reform when making his election pledges in 2016.

Publication date: 29 September 07:51 AM

What is so precious about Ukraine for international investors? An American businessman shares his opinion

More and more international investors have been paying attention to Ukraine as a promising area for profitable investing. Cody Shirk, an American entrepreneur, traveler and investor, is now urging international investors to look at Ukraine as a country with really great investment potential, Market Leader reports.

Publication date: 27 September 03:16 AM

China’s Debt Bubble May Trigger Another Global Financial Crisis

The Chinese economy keeps on slowing down as China’s debt bubble is growing. International experts are concerned about that. They are afraid of a new global financial crisis, Market Leader reports. The thing is, the Chinese economy is not growing fast enough anymore. Beijing has to admit the economic slowdown. The entire international expert community is now closely watching this slowdown and expressing their concerns about China’s economic prospects amid the mentioned economic slowdown and inflating debt bubble.

Publication date: 25 September 12:44 PM

Why Is German Parliamentary Election Important to Europe?

Judging by the results of several sociological surveys, the chances of electing Angela Markel for the next 4 years is fairly high at the moment. Even though there is almost no intrigue in the election, the international community has still been closely watching it, Market Leader reports

Publication date: 24 September 12:55 AM