Hungary and EU Gas Infrastructure

Russia is looking to double down on a pivot to the east. Liquefied natural gas makes up less than 10% of Russia’s total gas capacity, therefore the country’s gas exports are still dependent on a network of fixed pipelines that transport piped gas. The majority of Russia’s pipelines originate in western Russia and connect to Europe. As such, they cannot be connected to a separate, nascent pipeline network that connects Eastern Siberia to Asia. Russia’s eastbound pipeline has just 10% the capacity of their westbound European pipeline network. Approximately 16.5 billion cubic meters (less than 10%) of Russia’s 170 billion cubic meters of natural gas was transferred to China last year.

Long-planned Asian pipeline projects, which are now under construction, are still years away from becoming operational. Funding of these expensive gas pipeline projects have placed Russia at a large disadvantage.

In 2021, Europe purchased 83% of Russia’s gas exports which accounted for 46% of its demands. These trade figures demonstrate the global demand for Russia’s resources versus their market share. According to this month’s figures supplied by the Russian state energy company, Gazprom, production demand has fallen more than 35% year over year due to the lack of pipeline access to Asia.

For more information, please contact: agnes.torok@trade.gov