Prospects for Russian gas in China

Abstract

The article examines China’s gas market and analyzes the factors influencing the long-term changes in demand for this energy resource.
The author also attempts to assess the expansion of Russia’s participation in the Chinese gas market, and presents interim recommendations on how to utilize the potential for developing energy cooperation between China and Russia. In this case, the northeastern provinces of China, located near the Russian border, aft er the launch of the Power of Siberia gas pipeline, will be saturated with Russian gas. At the same time, the insufficient development of gas infrastructure - pipeline capacities, gas storage facilities, distribution networks - in China will not allow increasing exports if Russia builds additional capacities. To an even greater extent, this applies to the Power of Siberia-2 gas pipeline project. The most promising way to increase Russian gas exports to China is the organization of Russian LNG supplies to China’s coastal regions, where the demand for gas is expected to grow steadily.