China in BIG trouble due to Israel-Iran war; Xi Jinping now depends on Putin for..., good news for Russia due to...
China's support for Iran in the recent Israel-Iran war may prove costly for Beijing as the South Asian power is likely to bear the brunt of a potential oil crisis if the conflict reignites. Beijing issued a harsh condemnation of Israel and the United States, after the two allies bombed Iranian nuclear sites last week.
But experts believe that China's support for Iran will likely decrease in the future due its emerging role as a mediator in the Middle East and the damage caused by Tehran's threats to block the Strait of Hormuz. On the other hand, Russia is expected to benefit more from the Israel-Iran war, which is why Moscow largely distanced itself from the conflict, barring a few strong statements, even though Tehran is a major ally. China now more dependent on Russia for energy needs
As per media reports, China, which purchases a large chunk of Iran's oil and gas produce, is worried because Tehran will likely blockade the Strait of Hormuz in case of another attack by Israel and/or the US, which will negatively impact Beijing's energy needs. The situation has forced China to once again consider Russia's proposed Power of Siberia 2 pipeline, according to a report by the Wall Street Journal.
Citing anonymous sources close to Beijing, the WSJ report said China has begun showing interest in the Power of Siberia 2 project, after Beijing had earlier disagreed with Moscow's proposals regarding the ownership and cost of the proposed pipeline. The report also noted that China does not want to be overly dependent on any single source for its energy needs, and is considering to purchase more oil and gas from other oil-producing countries apart from allies like Iran and Russia.
Notably, about a third of China's gas imports come as LNG from Qatar and the United Arab Emirates (UAE), the WSJ report said, citing data from Rystad Energy. Additionally, Russia is China's third-largest LNG supplier after Australia and Qatar, and according to S&P Global, Russia is also China's largest pipeline supplier, via Siberia 1, whose throughput is set to reach 38 billion cubic meters this year.
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