Outlook for Russia-Asia gas ties.
Last year, Russia's President Vladimir Putin signed a 30 year deal worth 400 billion dollars to sell 38 billion cubic metres (bcm) yearly of natural gas to China, starting in 2018-19. Gazprom will have to build the 4,000 kilometres 'Power of Siberia' pipeline. The deal is the cornerstone of Russia's pivot towards Asia. Other elements include the East Siberia Pacific Oil Pipeline, the liberalisation of liquefied natural gas (LNG) exports and the planned second pipeline to China via the Altai Western route. However, the past year's events are frustrating Moscow's ambitions. Whether Russia succeeds or not bears implications for the global gas industry.
By 2035, over 30% of Russia's gas exports will go to Asia.
Liquefaction technologies are not on the sanctions list, but they might be if sanctions were widened.
To seal the Altai deal, Russia will have to grant price discounts to make the offer too good to refuse.
