Putin’s Pipe Dream Exposes China’s Energy Advantage

June 14, 2024/in /by Rudolf Huber

Guess why Putin did not get his deal. He expected things from Xi that the chairman did not want to agree to. Power of Siberia is a very expensive endeavor and will need quite high gas prices for 20 years to justify its construction cost. Why would Xi lock high prices in if he can have it cheaper from LNG? Also, Russia and China are more rivals than allies. They put up the smiles and the common front because of the international situation both are in but there is very little that unites the two. Lastly, Xi is embattled in his own country so he cannot afford a lot of overtures for brownie points. China might not need the gas as it might revert ever more to coal.

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