Pipeline Marks A Step Forward For China's Import Diversifcation Strategy

摘要

The long anticipated start-up of the Power of Siberia (POS) pipeline marks a step forward for China’s broader energy import diversifcation plan. In an energy context, China and Russia make an ideal pair. The bulk of China’s current gas imports are secured on medium to long term contracts; as such POS gas will mainly compete with spot LNG purchases for a place in the domestic market. Regardless of where it obtains its gas, China is unlikely to waver from the strategy of steering the national energy mix towards cleaner energy sources, such as natural gas and renewables.