Russia’s Eastern Gas Move

In response to rapidly growing Chinese gas demand, Russian gas producer Gazprom and China’s state-owned energy company CNPC have announced the launch of the Power of Siberia Pipeline in 2019. This is earlier than expected by some observers.

The project has received significant political backing in Russia, which has been outspoken about its intentions to boost gas and LNG exports to the Asian markets in the coming years. China’s CNPC seems ready to provide support for the Power of Siberia too.

Observers are sceptical, however, that Russia would be able to refocus its gas exports from Europe to Asia in the near future. Concerns also remain over whether Gazprom has the financial resources to bring the Power of Siberia line up on time and whether China would be willing to develop more pipeline projects with Russia.

This white paper examines China’s gas demand prospects and the role of Russia’s gas in China’s energy mix.

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