Russia’s gas pivot to Asia
Russia’s pivot to Asia has taken a long time to mature in the gas sector, but 2019 is set to be an important year as the Kremlin seeks to diversify its sources of export revenues. The Power of Siberia pipeline is due to come onstream at the end of the year, and before then agreements on two further export routes may also have been signed. The history of energy negotiations between the two countries suggests that caution is needed, but it would appear that both political and economic reasons could catalyse action on the Power of Siberia 2 (Altai) and Far East pipeline export schemes. In addition, Russia-China cooperation over LNG projects in the Russian Arctic could also develop further, with commercial and geo-political consequences. This Energy Insight addresses the latest developments in this emerging story and considers the consequences for European consumers and the global LNG market.