Russia’s piped gas supplies to China via Power of Siberia reached their max contractual capacity yesterday, with flows now hitting 105 mcm/d – and meeting approximately 7% of China’s winter gas demand.
Power of Siberia flows ramped up to their max capacity one month earlier than originally planned, reflecting China’s strong gas demand growth and eagerness to ensure stable supplies ahead of the winter season.
Ramping up gas flows to their maximum capacity required also finishing the last sections of Power of Siberia’s Chinese sister, the “East Route” pipeline system, which stretches from Heihe to Shanghai, with a total length of over 5000 km.
The next milestone for Russian-Chinese gas relations will be the start of the Far East pipeline, which is expected to start operations in 2027 and would bring around 10 bcm/y to China.
Meanwhile the Power of Siberia-2 project, with a planned capacity of 50 bcm/y, seems to be stuck in negotiations… an alternative pipeline transiting via Kazakhstan with a capacity of 35 bcm/y seems to be a more likely option at this stage.
What is your view? How will China-Russia gas relations evolve in the coming years? What could be the impact on LNG?
Source: Greg MOLNAR
