China-Russia Pipeline Seen Displacing One-Third of LNG Imports, Analysts Warn
“China’s planned Power of Siberia 2 pipeline with Russia could displace the equivalent of one-third of the country’s LNG imports and deliver a ‘shock’ to the global seaborne gas trade, according to analysts cited by the South China Morning Post (SCMP). The 50-billion-cubic-meter-per-year conduit, slated to run through Mongolia, would lock in long-term Russian pipeline supply and sharply cut China’s need for LNG cargoes just as global exporters scale up capacity.”
“If Power of Siberia 2 is built on schedule, it would provide China with fixed-price, long-distance pipeline gas at volumes comparable to major LNG supply deals. That shift could cap demand growth for new liquefaction projects targeting Asia, forcing U.S., Qatari, and Australian exporters to compete more aggressively for the remaining market. Traders told Bloomberg that such a rebalancing would ripple through long-term contract negotiations now underway, reshaping LNG investment decisions well into the 2030s.”
See also: China-Russia pipeline would be ‘shock’ to global LNG trade – analysts