Latest news with #PowerofSiberia2
Canada News.Net
4 days ago
- Business
- Canada News.Net
China warming to new Russian mega gas pipeline WSJ
The Israel-Iran conflict has renewed Beijings interest in Power of Siberia 2, according to the outlet China's interest in the construction of Russia's proposed Power of Siberia 2 pipeline, which would deliver gas via Mongolia, has intensified following the outbreak of the conflict between Iran and Israel, the Wall Street Journal reported on Tuesday, citing sources in Beijing. The planned mega pipeline would allow up to 50 billion cubic meters (bcm) of natural gas to be delivered annually from northern Russia to China via Mongolia. The report said that the recent Iran-Israel conflict has raised concerns within the Chinese government about the reliability of oil and gas supplies from the Middle East, prompting policymakers to explore alternative energy sources. China imports about 30% of its gas as LNG from Qatar and the UAE through the Strait of Hormuz - a route for about 20% of the world's oil - which Iran has threatened to close in response to the US strikes. Chinese "teapot" refineries have also grown reliant on discounted Iranian crude, with analysts estimating that over 90% of Tehran's oil exports now go to China - despite US sanctions aimed at curbing the country's oil sales abroad. "The escalation of the Middle East tensions underscores the severe consequences of a potential blockade in the Strait of Hormuz," Wei Xiong, head of China gas research at Rystad told the outlet. A blockade of the chokepoint could trigger a major shift in Beijing's LNG supply, with the country "moving from being over-contracted to supply deficit." Even with a ceasefire, the recent conflict has prompted Beijing to seek alternative energy sources, according to analysts and officials. China is also looking to increase oil imports from Russia, which already supplies about a fifth of its crude to its neighbor. Moscow, in turn, is pursuing the project as it seeks to diversify its energy export markets amid Western sanctions and reduced European demand. The Power of Siberia 2 pipeline is seen in Beijing as a strategic move to further diversify supplies and strengthen energy security in the face of rising geopolitical uncertainty, the report says. "The volatility and unpredictability of the military situation have shown the Chinese leadership that a stable land-based pipeline supply has geopolitical benefits," the outlet cited Aleksander Gabuev, the director of the Carnegie Russia Eurasia Center and an expert on China-Russia relations, as saying. "Russia could benefit from that." China is seeking closer ties with Russia as the White House signals efforts to drive a wedge between the two nations, according to sources familiar with Beijing's policymaking. Economic cooperation has continued to grow despite sweeping Western sanctions, with bilateral trade reaching a record $245 billion in 2024.
India.com
4 days ago
- Business
- India.com
China in BIG trouble due to Israel-Iran war; Xi Jinping now depends on Putin for..., good news for Russia due to...
(File) 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.
Hindustan Times
6 days ago
- Business
- Hindustan Times
U.S. Strikes Set Back Iran Nuclear Program by a Few Months, Initial Report Says
The ongoing Israel-Iran conflict has reignited interest in the stalled Power of Siberia 2 pipeline, which aims to transport Russian natural gas to China. Concerns over Middle Eastern oil supply reliability may prompt China to reconsider its energy partnership with Russia, despite previous disagreements on pricing and ownership. Construction could take at least five years if an agreement is reached.
Hindustan Times
6 days ago
- Business
- Hindustan Times
Israel-Iran Conflict Spurs China to Reconsider Russian Gas Pipeline
The original Power of Siberia pipeline opened in 2019. The war between Israel and Iran has revived Chinese leaders' interest in a pipeline that would carry Russian natural gas to China, according to people close to Beijing's decision-making, potentially jump-starting a project that has been stalled for years. The Power of Siberia 2 pipeline project has been mired in disagreements over pricing and ownership terms, as well as Chinese concerns about relying too heavily on Russia for its energy supplies. But the recent war in the Middle East has given Beijing reason to reconsider the reliability of the oil and natural gas it gets from the region, the people said, even as a fragile cease-fire between Israel and Iran takes hold. China imports around 30% of its gas in the form of liquefied natural gas from Qatar and the United Arab Emirates via the Strait of Hormuz, a maritime chokepoint that Iran threatened to close, according to consulting firm Rystad Energy. Meanwhile, China's independent refineries, known as teapots, have in recent years become hooked on cheap Iranian crude. More than 90% of Iran's oil exports now go to China, analysts say, even though the U.S. has sanctions designed to prevent Iran from selling its oil abroad. Trump made an unusual acknowledgment of China's Iranian oil imports Tuesday after announcing a cease-fire in the Israel-Iran conflict. 'China can now continue to purchase Oil from Iran. Hopefully, they will be purchasing plenty from the U.S., also,' he said in a post on social media. A White House official later said Trump was simply calling attention to the fact that the cease-fire prevented disruption to oil flows through the Strait of Hormuz. He continues to call on China to import U.S. oil rather than Iranian oil in violation of U.S. sanctions, the official said. But, even with a cease-fire in place, the recent conflict has spurred Beijing to cast about for alternatives, the people and analysts say. Beijing is also looking to increase oil purchases from Russia, which supplies around one-fifth of China's oil, analysts say. Moscow has been pushing to boost its energy sales to its neighbor as it needs cash to fund its war in Ukraine. 'The volatility and unpredictability of the military situation have shown the Chinese leadership that stable land-based pipeline supply has geopolitical benefits,' said Alexander Gabuev, the director of the Carnegie Russia Eurasia Center and an expert on China-Russia relations. 'Russia could benefit from that.' Russian state media have linked the tensions in the Middle East to the revival of the Power of Siberia 2 project. 'LNG Armageddon: China Urgently Returns to Power of Siberia 2 Project,' read one recent headline on Prime, a Russian state news website. Russia is expected to try to put the project on the agenda when President Vladimir Putin visits Chinese leader Xi Jinping in China in September, analysts say. The Power of Siberia 2, a sequel to the original Power of Siberia gas link that opened in 2019, has long been more urgent to Moscow than to Beijing. Russia lost its biggest energy market when much of its gas exports to Europe stopped after its invasion of Ukraine. Since then, Moscow has become increasingly dependent on China as a buyer. But limited pipeline infrastructure and small LNG capacity meant that only a new, bigger pipeline could significantly boost supplies to China. For Beijing, on the other hand, LNG supplies from the Middle East and other places meant that a deal was far less crucial. One official reason they have given to Russia is that China limits the import of oil and gas from a single country to 20%, according to the people close to Beijing's decision-making. As a result, talks have dragged on for years, even as Moscow has repeatedly indicated a deal was imminent. That might now be changing. The Strait of Hormuz, which flows between Oman and Iran and connects the energy-rich Persian Gulf with the Arabian Sea, is deep and wide enough to handle the world's largest tankers. That makes it a critical pass-through point for oil and gas, and its closure could disrupt markets and raise energy costs. The likelihood of a complete closure of the Strait is low because of Iran's reliance on it and the potential U.S. military response it could draw, analysts say, but the recent conflict has highlighted the impact such a move would have. 'The escalation of the Middle East tensions underscores the severe consequences of a potential blockade in the Strait of Hormuz,' said Wei Xiong, head of China gas research at Rystad. If the chokepoint is blocked, 'China's LNG supply situation will face huge change, moving from being over-contracted to supply deficit.' Beyond the current turmoil in the Gulf, the U.S.-China trade war has in recent months led to a halt in U.S. LNG exports there, reversing years of growing energy trade between the two nations. Longer term, as China pursues its green energy goals, Beijing foresees an expanding role for natural gas as a so-called bridge fuel between the hydrocarbon and post-carbon eras, analysts say. China is also interested in strengthening its relationship with Russia at a time when the Trump administration has openly discussed trying to drive a wedge between Beijing and Moscow, the people close to Beijing's decision-making said. Moving ahead with the stalled pipeline could help solidify those ties. To be sure, even if an agreement on the pipeline is reached, analysts estimate its construction will take at least five years, similar to the original 1,800-mile long gas link. Other significant hurdles remain, including a disagreement on gas pricing and the considerable investment required for the large-scale construction. Another sticking point is China's demand for ownership stakes in the project, a concession Russia has been unwilling to make. The disagreements are ultimately a sign of mistrust that has lingered between the two countries—despite what Putin and Xi once declared was a 'no-limits' friendship. Write to Georgi Kantchev at and Lingling Wei at
Yahoo
07-05-2025
- Business
- Yahoo
Putin, Xi to discuss delayed 'Power of Siberia 2' pipeline during Victory Day celebrations, Bloomberg reports
Presidents Vladimir Putin and Xi Jinping will discuss a long-delayed gas pipeline linking Russia and China when they meet in Moscow this week for Russia's Victory Day celebrations, Bloomberg reported on May 7. Construction of the pipeline, referred to as Power of Siberia 2, was scheduled to begin in 2024, but has been plagued with construction issues and diplomatic tussles. The proposed pipeline would strengthen Russia's ability to export gas to China, which is increasingly important for Russia as Europe declares its goal to fully sever the European Union's energy dependence on Moscow by 2027. The Power of Siberia 2 pipeline would give Moscow the ability to export 50 billion cubic meters a year, and give China the advantage of cheaper LNG imports. If completed, the 3,550-kilometer pipeline would connect Russia's Yamal Peninsula through Mongolia to China. But in January 2024, Mongolian Prime Minister Luvsannamsrain Oyun-Erdene said Russia and China had not agreed on key details and that construction would be delayed. In June it was reported that talks between Russia and China had reached a dead end as Beijing sought to exhort tough conditions on price and supply levels. According to Bloomberg, the economic strains being felt currently by both countries may be forcing them to settle their differences and move the project forward. Xi is one of 29 world leaders set to attend the Victory Day parade on May 7, according to the Kremlin, which added he would be there to "sign a number of bilateral inter-governmental and inter-departmental documents" to strengthen Chinese-Russian relations. Read also: Ukraine ramps up drone strikes on Moscow as Russian-friendly leaders set to attend Victory Day parade We've been working hard to bring you independent, locally-sourced news from Ukraine. Consider supporting the Kyiv Independent.
