The war between Israel and Iran has revived Beijing’s interest in the Power of Siberia-2 pipeline and Russian natural gas supplies to China, The Wall Street Journal reported, citing Chinese sources.
Until now, the construction of the Power of Siberia-2 project has been hampered by disagreements over pricing and ownership terms. In addition, China had concerns about being too dependent on Russia for energy. However, the war in the Middle East has given Beijing reason to reconsider the reliability of oil and gas supplies from the region.
According to consultancy Rystad Energy, China imports about 30% of its gas in the form of LNG from Qatar and the UAE via the Strait of Hormuz, which Iran threatened to close during the war, the WSJ wrote. But even with the ceasefire, the recent war has prompted Beijing to look for alternatives, sources said. Analysts say China is also looking to increase its oil purchases from Russia. WSJ sources say Beijing is keen to strengthen its relationship with Moscow amid the Donald Trump administration’s efforts to ‘drive a wedge’ between Russia and China. Continued construction of the frozen pipeline could help strengthen those ties.
