Russia and China Discuss New Gas Export Route

Russia is exploring a new export route for natural gas to China through Kazakhstan, with Deputy Prime Minister Alexander Novak indicating that the project is in its initial discussion stages. This potential route could deliver up to 35 billion cubic meters (bcm) of gas annually, complementing existing exports which have already reached 40 bcm this year. The China-Russia east-route pipeline, recently completed, will supply 38 bcm annually to key Chinese regions, addressing local gas supply needs. As Russia shifts its energy focus to China following diminished European demand, China's growing appetite for gas is evident with a projected 50% increase in demand by 2040. Meanwhile, Kazakhstan is also seeking to boost its gas exports to China. However, analysts caution that China may not require additional Russian gas until after 2030.