China welcomes new Russian mega gas pipeline

(MENAFN) China’s enthusiasm for Russia’s proposed Power of Siberia 2 pipeline, designed to deliver gas through Mongolia, has grown stronger following the recent conflict between Iran and Israel, according to the Wall Street Journal citing sources in Beijing. The pipeline would transport up to 50 billion cubic meters of natural gas annually from northern Russia to China.

The ongoing Middle East tensions have raised concerns within the Chinese government about the stability of oil and gas supplies from that region. China currently imports roughly 30% of its gas as LNG from Qatar and the UAE via the Strait of Hormuz, a critical passage that Iran has threatened to block in response to US strikes. Furthermore, Chinese refineries have become heavily reliant on discounted Iranian crude, with analysts estimating that over 90% of Tehran’s oil exports now flow to China despite US sanctions.

Experts warn that a blockade of the Strait of Hormuz could severely disrupt Beijing’s LNG imports, shifting the country from a supply surplus to a deficit. Even if a ceasefire is reached, China is actively seeking alternative energy sources and aims to boost oil imports from Russia, which already supplies about 20% of China’s crude oil.

For Moscow, the Power of Siberia 2 project offers an opportunity to diversify its energy export markets amid Western sanctions and shrinking demand from Europe. Chinese officials view the pipeline as a strategic asset to improve energy security amid growing geopolitical uncertainties.

Analysts note that the recent instability in the Middle East highlights the benefits of stable, land-based pipeline supplies for China’s energy security, a situation that could also advantage Russia. Despite efforts from the White House to drive a wedge between the two countries, China and Russia’s economic cooperation continues to deepen, with bilateral trade expected to hit a record $245 billion in 2024.

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