China reconsiders recent Russian mega gas pipeline
(MENAFN) China is showing renewed interest in Russia’s proposed Power of Siberia 2 gas pipeline, especially in light of recent tensions in the Middle East, the Wall Street Journal reported on Tuesday, citing Chinese government sources.
The pipeline project, which would run from northern Russia to China via Mongolia, is designed to deliver up to 50 billion cubic meters of gas annually. Growing instability in the Middle East—exacerbated by the recent Iran-Israel conflict—has raised concerns in Beijing over the reliability of energy imports from the region.
China currently sources around 30% of its natural gas as LNG from Qatar and the UAE, delivered through the Strait of Hormuz—a vital waterway for 20% of global oil shipments that Iran has threatened to block following US strikes. In addition, China’s smaller, independent “teapot” refineries heavily depend on discounted Iranian oil, which now accounts for over 90% of Iran’s crude exports.
Wei Xiong of Rystad Energy warned that any disruption in the Strait of Hormuz could leave China with a significant gas shortfall, shifting the country from a supply surplus to a deficit. Even if a ceasefire holds in the Middle East, the recent turmoil has prompted Beijing to seek more secure energy alternatives.
Russia is eager to build the Power of Siberia 2 pipeline as it seeks to redirect its energy exports to Asia amid declining demand from Europe and Western sanctions. China already imports about 20% of its oil from Russia and is considering increasing those volumes.
Analysts say the pipeline would enhance China’s energy security by offering a stable, land-based supply route amid increasing geopolitical risks. Aleksander Gabuev, director of the Carnegie Russia Eurasia Center, noted that the unpredictability of regional conflicts has made Chinese leaders more appreciative of reliable overland gas supplies from Russia.
Despite Western pressure, China and Russia continue deepening their economic relationship, with trade between the two nations hitting a record $245 billion in 2024. Sources familiar with Beijing’s strategy say the US attempts to divide the two powers have only strengthened their resolve to cooperate further.
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