OIES – China – Russia: The Gas Hedge, Sep 2025

The main theme of the report concerns the strengthening of gas relations between China and Russia.

Key findings include the supply of LNG from the Arctic LNG 2 project to China and its significance in the context of Western sanctions. The agreement between Russia and China to increase gas supplies through the existing Power of Siberia 1 pipeline and the planned construction of Power of Siberia 2 are also highlighted. These steps are seen as a test for Western sanctions and a demonstration of geopolitical alignment between the two countries. Potential easing of China's gas balance and creating optionality in its portfolio are also discussed.