MOSCOW, March 23 (RIA Novosti) - Global competition for Russian natural gas will increase now that the country has signed a memorandum on energy cooperation with China, experts said Thursday.
Europe will have to compete with China and Asian markets in the future to get Russian natural gas, said Yevgeny Satskov, an analyst at Metropol brokerage.
"Previously, only Europe and the United States competed for Russian natural gas supplies. Now China and Asia-Pacific nations will join the competition," he said.
Satskov said statements by European politicians about looking for alternative gas sources are just so much hot air.
"There is political willingness that is unmatched by real possibilities, because gas production elsewhere is falling," he said.
Alexei Logvin, head of the consulting department at Interfintrade brokerage, said the agreement would not affect gas deliveries to Europe, because the gas will come from different gas fields.
Satskov said Europe's dependence on Russian natural gas would only increase in the future, and it should take steps now to secure additional volumes from Russia, as Germany is currently doing by participating in Gazprom projects.
Logvin said Russia is now in a good position to establish itself on the Chinese market.
"This is a very interesting project, which will require that Gazprom develop new gas fields to ensure deliveries," he said.
Logvin said pipeline gas will not face fierce competition from liquefied natural gas, because LNG will be used on the coast, whereas gas pipelines will run to China's western provinces.
Satskov said the memorandum signed with China will help Russia diversify delivery markets, while increased competition between consumers will push up prices for natural gas.
"Nations will feel secure in terms of energy if they sign long-term contracts," he said.
Natural gas giant Gazprom and China National Petroleum Corporation signed a memorandum March 21 on Russian natural gas deliveries to energy-hungry China.
