How the China-Russia Gas Pipeline is Changing the Global Liquefied Natural Gas Trade!
The "Power of Siberia-2" gas pipeline construction agreement signed between China and Russia has made many American politicians uneasy. The reason is obvious: this project will help China reduce its reliance on U.S. liquefied natural gas exports and enhance its energy security. As the largest global liquefied natural gas exporter, there is a risk that, over time, instability in the Middle East could disrupt maritime shipping, or that land pipelines may be more reliable than maritime shipping due to geopolitical and military tensions between the United States and its Asian allies.
Building a pipeline connecting Russia's Arctic peninsula of Yamal with Northeast Asia will greatly strengthen the economic relations between the two countries. However, the world's largest energy transaction will no longer be conducted in dollars, which is the most practical! This pipeline may also have a significant impact on global gas flows within the next decade. The "Power of Siberia-2" pipeline project allows Russia to compensate for the loss of part of the European pipeline gas supply market. For China, this pipeline provides insurance against potential risks in the liquefied natural gas market.
(Original: Russian energy export revenue accounts for 30% of its national fiscal revenue)
This pipeline will be the largest, most scale and capital-intensive natural gas project in the world. The distance from the starting point north of the Arctic Circle to the potential end in major coastal cities in China exceeds 4,000 kilometers. Within Russia alone, it will stretch 2,600 kilometers through the Siberian forests, then pass through Mongolia and the country's grassland areas, and extend nearly 1,000 kilometers. The annual gas transportation capacity will reach 50 billion cubic meters. The "Power of Siberia-1" pipeline has already been supplying natural gas to China, and the two countries signed a 30-year agreement. This route bypasses Mongolia and connects the two countries directly. Supply started in 2019, and this year reached maximum transmission capacity of 38 billion cubic meters. Another pipeline called "Far East" is expected to be operational in 2027.
The completion of this pipeline means that Russia may only maintain part of the European market, allowing U.S. "free democracy" natural gas to access Europe.
Original: www.toutiao.com/article/1843377926672650/
Statement: The article represents the views of the author himself.