-- The Russian government expects to sell natural gas to China at prices 38% lower than those paid by Europe, Bloomberg reported Monday, citing two people familiar with governmental forecasts.
Russian gas prices for the Chinese market are seen to hit $258.80 per 1,000 cubic meters this year, more than one-third of the price offered to its remaining European buyers, the report said.
The gap could narrow in the next three years but will only be more than 27% in 2029, the report said.
The lower prices could explain why a pivot to China could not offset Russia's losses in its Western markets, Bloomberg said.
Most European markets severed with Russia over the conflict in Ukraine, the report said.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)