We use cookies on this website. By continuing to use this site without changing your cookie settings, you agree that you are happy to accept our privacy policy and for us to access our cookies on your device.
Transcript/Script((PLAYBOOK SLUG: China-Russia Europe Gas
HEADLINE: ‘Power of Siberia 2’ Pipeline Could See Europe, China Compete for Russian Gas
TEASER: Deal to build pipeline from Russia to China via Mongolia could be signed during February’s Winter Olympics in Beijing
PUBLISHED AT: 1/18/2022: AT 8:15AM
BYLINE: Henry Ridgwell
CONTRIBUTOR:
DATELINE: London
VIDEOGRAPHER: Henry Ridgwell
VIDEO EDITOR:
SCRIPT EDITORS: MAS, Bowman SR
VIDEO SOURCE (S): Teams, Reuters, AFP, APTN
PLATFORMS (mark with X): WEB __ TV _X_ RADIO __
TRT: 3:04
VID APPROVED BY: wpm
TYPE: VPKGF
EDITOR NOTES: HFR. WEB DESK: Per John, pin this story to world widget for full day." ))
((INTRO)) [[As winter bites, Europe is facing a gas shortage – with lower volumes of gas exports from Russia forcing a big spike in prices. But the volatility of Russia’s gas supply could be about to get worse – as Moscow plans to build a new pipeline to China, which could give Russia the power to sell gas to the highest bidder. Henry Ridgwell reports from London.]]
((NARRATOR))
From the frozen expanses of Siberia, Russia is already sending some natural gas to China.
The ‘Power of Siberia 1’ pipeline opened in 2019 – tapping the gas fields in Russia’s far east to help fuel the Chinese economy.
((Tom Marzec-Manser, Head of Gas Analytics at ICIS))
“Power of Siberia 1 uses gas that is not connected to the fields that can supply the European market. So it’s not a question at the moment at least of gas from Russia going to China, being the loss of gas that could go to Europe.”
((NARRATOR))
But that could soon change. Moscow and Beijing are close to agreeing a second pipeline – the ‘Power of Siberia 2’ – which would double gas exports from Russia to China. It would cross through Mongolia and into the power-hungry industrial regions near Beijing.
It would also join up Russia’s internal gas network – connecting China with the same gas fields in Russia’s Yamal peninsula that supply Europe.
((Tom Marzec-Manser, Head of Gas Analytics at ICIS))
“It does give Gazprom – as that major exporter – the optionality to direct gas to one market over another.”
((NARRATOR))
That could give Russia considerable leverage.
((Filip Medunic, European Council on Foreign Relations))
“Technically, it is hard to tell whether the pricing system will be designed in a way that there is going to be the possibility to sell to the highest bidder, but I think that Russia in intent is definitely eyeing in this direction, to be able to use it as a leverage - at least rhetorically - in the coming decade.”
((NARRATOR))
Russia has massed over 100-thousand troops on the border with Ukraine. The West has threatened crippling sanctions if Russia invades – and there are other incentives for Moscow to find new customers for its gas, say analysts.
((Tom Marzec-Manser, Head of Gas Analytics at ICIS))
“The trajectory of the European Union in particular in terms of decarbonization is that that gas will have a diminishing role over the medium to long term.”
((NARRATOR))
But navigating a new Chinese market won’t be easy for Moscow, say analysts.
((Filip Medunic, European Council on Foreign Relations))
“China is well known for using its political, economic, also military posture and weight, and to be a tough negotiating partner. And (it) also is allegedly considering itself rather as the big hegemon here, and Russia as the junior partner.”
((NARRATOR))
There is speculation that the deal for the ‘Power of Siberia 2’ pipeline could be signed during next month’s Winter Olympic Games in Beijing – but there’s yet to be any official confirmation.
((Henry Ridgwell, for VOA News, London.))
NewsML Media TopicsEconomy, Business and Finance
Topic TagsRussia, China, Gas
NetworkVOA
Embargo DateJanuary 18, 2022 16:19 EST
Brand / Language ServiceUS Agency for Global Media
