economy
March 11, 2026
China prioritizes Russian gas amid Middle East conflict
China has signaled its intention to secure more natural gas from Russia in the draft version of its development blueprint for 2026–2030
TL;DR
- China's draft five-year plan (2026-2030) signals increased natural gas imports from Russia.
- The plan mentions advancing preparatory work on the central route of the China-Russia natural gas pipeline, likely referring to the Power of Siberia 2.
- The Power of Siberia 2 pipeline is designed to deliver up to 50 billion cubic meters annually from western Siberia to northern China via Mongolia.
- Escalating conflict in the Middle East threatens LNG shipments transiting the Strait of Hormuz, a key energy chokepoint.
- China currently sources about 18% of its LNG from Qatar and up to 5% from the UAE, with cargoes typically routed through the Strait of Hormuz.
- The draft also mentions the fully constructed China-Russia Far East Natural Gas Pipeline, set to go operational in January 2027 with an annual capacity of 12 billion cubic meters.
- Russia has become China's second-largest LNG source, behind Qatar.
- Russia has indicated a potential rerouting of gas supplies from Europe to Asia-Pacific markets, including China.
- China and Russia have deepened energy trade, declaring a 'no-limits' partnership in 2022, with bilateral trade exceeding $200 billion annually.
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