China’s Russian deal ‘a wake-up call’ for LNG sector

The deal for a second gas pipeline supply could have consequences for the Asian LNG sector

A second gas pipeline supply deal between China and Russia would put a huge dent in the potential Asian market for liquefied natural gas (LNG) with some analysts warning there could be dire repercussions for project developers across the globe.The $400bn Power of Siberia pipeline gas supply deal, signed in May 2014, envisages sending 38bn cubic metres (cm) per year (or 27m tonnes per year in LNG volume) from eastern Russia to China. A memorandum of understanding was signed for the second gas pipeline – the  West Siberia or Altai link – was signed in November 2014,  and its conversion into a binding agreement is being pursued. “China’s national oil companies should reconsider LNG deals