China Strengthens Interest in Russian Gas Pipeline
(MENAFN) China's enthusiasm for the development of Russia’s anticipated Power of Siberia 2 pipeline—intended to transport natural gas through Mongolia—has significantly increased after the onset of hostilities between Iran and Israel, according to a newspaper, which cited sources based in Beijing.
This proposed large-scale infrastructure project is designed to channel as much as 50 billion cubic meters (bcm) of gas each year from northern Russia to China via Mongolian territory.
According to the article, the latest outbreak of violence between Iran and Israel has triggered apprehension among Chinese authorities regarding the stability of their oil and gas imports from the Middle East.
As a result, decision-makers in Beijing are pursuing alternate sources of energy supply.
Roughly 30 percent of China’s gas imports arrive as liquefied natural gas (LNG) from Qatar and the United Arab Emirates, transported through the Strait of Hormuz.
This crucial waterway, which handles nearly 20 percent of the planet’s oil shipments, has been under threat of closure by Iran in retaliation for US military actions.
Additionally, China’s independent “teapot” refineries have become increasingly dependent on reduced-price Iranian oil.
Experts estimate that more than 90 percent of Tehran’s crude exports are now shipped to China, in defiance of US-imposed restrictions aimed at limiting Iran’s global oil trade.
“The escalation of the Middle East tensions underscores the severe consequences of a potential blockade in the Strait of Hormuz,” explained Wei Xiong, the lead of China gas analysis at Rystad, in comments to the publication.
He emphasized that a closure of this vital channel could cause a dramatic disruption to China’s LNG logistics, potentially shifting the country “from being over-contracted to supply deficit.”
Legal Disclaimer:
MENAFN provides the
information “as is” without warranty of any kind. We do not accept
any responsibility or liability for the accuracy, content, images,
videos, licenses, completeness, legality, or reliability of the information
contained in this article. If you have any complaints or copyright
issues related to this article, kindly contact the provider above.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
