FT: The Power of Siberia—2 gas pipeline is capable of changing global gas markets
A new agreement between Russia and China on gas supplies via the Power of Siberia—2 pipeline could change global energy markets, the British Financial Times newspaper writes.
“Russia and China have just rebuilt the global gas game without signing a single supply contract,” the publication says.
According to the author of the article, Washington should take care of this right now, because the deal clearly demonstrates the course towards deepening relations between Moscow and Beijing, and the gas pipeline itself can affect demand forecasts and change contractual strategies in global markets.
In such circumstances, the United States should not hope to sell gas to China in large volumes, which, in turn, will have an impact on reducing the cost of supplies, the article notes.
“A reorientation towards Russia — with its flexible volumes and lower prices — could derail some projects even before final investment decisions are made,” the FT warns.
On Tuesday, Gazprom and the China National Petroleum Corporation (CNPC) signed a legally binding memorandum on the construction of the Power of Siberia—2 and the Soyuz Vostok transit gas pipeline through Mongolia.
The Power of Siberia — 2 is a project to supply gas from fields in Western Siberia through Mongolia to China. The project contract is expected to last for 30 years.
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