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Signing of deal on gas supply route to China via Altai is 'postponed indefinitely'

By The Siberian Times reporter
24 July 2015

Beijing reviewing its energy needs with slowing economy, says report.

Ukok plateau, Altai. Pictures: Elizaveta Manskova

Vedomosti newspaper today cited two federal officials saying that the signing of the gas supply contract with China via the Altai pipeline - also  known as Power of Siberia 2 - is being postponed for an indefinite period. 

The growth of the Chinese economy is slowing down and China is reviewing its energy balance, explained the officials.

The move - a significant blow to Russia - arises because demand for gas in China is decreasing, it is said.  

Huge new Siberian gas deal with China - but ecological backlash begins

Two federal officials saying that the signing of the gas supply contract with China via the Altai pipeline - also  known as Power of Siberia 2 - is being postponed for an indefinite period. Picture: Gazprom

Combined with the fall in oil prices, this means it is now more advantageous for China to buy LNG from Australia,  said Valery Nesterov, an analyst from Sberbank CIB. 

According to BP, in 2012-2013 the consumption of gas in China grew by 12-13 percent and in 2014 by 8.5 percent. In the first six months of 2015 consumption grew by only two percent,  he said.

The pipeline route over the Ukok Plateau in the Altai Mountains - site of ancient burials - had aroused opposition from environmentalists

Comments (2)

This was never going to get off the ground. Period. The Chinese are too cute when it comes to doing business & a foray into Russia for the foreseeable future business wise would be a bad move on their part. And you wouldn't/shouldn't have to ask, "Why"?
Jaker, dundalk
26/07/2015 12:06
1
2
It could be implemented if India participates and there is an extension of the pipeline to New Delhi
Enrique, Spain
25/07/2015 05:02
0
0
1

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