However, by 2035 the ESFE is still projected to produce only about 14 per cent of gas while the Western Siberia's share is estimated to be at nearly 80 per cent.
As oil production in the ESFE has started earlier and advanced further compared to the development of gas, it seems necessary to examine more closely the progression in the gas sector.
The exploitation of gas resources in the ESFE is underpinned by the notion of sustainability, which implies that natural gas and associated resources need to be developed efficiently.
Massive development of new oil and gas deposits in the ESFE may allow Russia to diversify its energy exports.
Henceforth, Rosnfet's exports have been growing steadily, parallel to the outputs from the greenfields in the ESFE. In 2015, Russia became the second largest oil supplier to China (following Saudi Arabia and surpassing Angola).
In the past, the largest deals were supported by China's upfront payments, which allowed Rosneft to finance the development of new oil deposits in the ESFE. However, recently some Russian companies have been seeing this scheme as rather disadvantageous both financially and commercially (over the reason of adding more negotiating power to China).
Japan favors Russia's ESFE oil over the Middle Eastern blends for its higher quality (light oil), shorter delivery time, lower transportation costs and security of the sea lanes.
(74) In Asia, Russia favors the APEC's initiative for Regional Comprehensive Economic Partnership (RCEP) linking it with the possibilities for the ESFE socio-economic development.
Taking into account such a structure of the sector and the fact that the gas segment undergoes the most remarkable developments, as well as keeping focus on the ESFE, this section centers on Rosneft, Gazprom and Novatek; more precisely, on their business strategies and competition among them as regards the Asian markets.
Affected by the sanctions, as has been explained above, Russian producers additionally face financial restraints and a lack of access to cost-efficient and technology-effective solutions, which are necessary for the development of the new projects in ESFE.
With already announced the delay (till 2021) and yet the time required to reach the PoS' projected capacity, China still stands to become the first recipient of Russia's new pipeline gas supplies from the ESFE. Other most probable additional supplies can be expected from the expansion of the Sakhalin-2 LNG project.
What Russia can do in order to mitigate such a risk is to more eagerly pursue an inclusive regional economic development of the ESFE. A greater regional oil and gas demand will create a sound alternative to export, thereby helping improve Russia's negotiation position vis-a-vis China.