China Will Import More Gas

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China Will Import More Gas

China Will Import More Gas From Russia

senior commodity analyst from Commerzbank believes that China is highly likely to import more natural gas from Russia. This was agreed when both countries' leadership agreed to increase the gas deliveries in the near future.

China is a rapidly growing economy, and they are always looking to diversify its energy sources. Right now, one of the major players in the gas market is Russia, and it's only natural for China to try to get more gas from Russia.

China Accounts For 25% Of Russian Gas Exports

Also, China is one of the few countries that doesn't have to worry about the US sanctions. The sheer size of the Chinese economy allows it to make trade deals even with countries like Russia without any worries.

Recently, the US President imposed a higher tariff on India because it was importing Russian oil. However, China is also doing the same, but the US administration has placed no such tariff on China.

Right now, around 25% of the Russian gas exports go to China, and it seems that both countries now want to step it up. The details show that the capacity will be increased from 38 to 44 billion cubic meters.

Meanwhile, another pipeline is also being built, which will go through Mongolia. This will allow China to get 50 billion cubic meters of gas from Russia.

If this deal goes through, it will further strengthen the trade ties between the two countries. Even today, China is one of the biggest customers of Russian natural gas.

This move from China would mean it has to rely less on LNG imports. As a result, the European countries could benefit from the lower prices of the LNG as the Chinese demand would decrease.

So in a sense, this move by China and Russia would lower the prices of the LNG, and this would benefit the Eurozone the most.

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