Dragons and Pipelines and Bears Oh My
China and Russia Sign Massive New Gas Deal
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  • S.C. Schwarz

    We could be in the LNG market too, if only Obama would approve some of those proposed LNG terminals. Of course, because of AGW, the terminals can’t be approved.

    I guess Russian gas doesn’t generate CO2?

  • PKCasimir

    Oh come off it. Do some analysis before you go trumpeting this rather minor deal as something apocalyptic.The Chinese took advantage of a weakened Russia to get some natural gas supplies at very cheap prices. Russia will be exporting some 38 billion cubic meters of natural gas per year to China; Russia now exports some 175 billion cubic meters of gas to Europe alone at much higher prices. As Europe weans itself off of Russian natural gas, the Russians are forced to sell natural gas at lower prices to China. Russia heavily subsidizes its domestic natural gas market and desperately needs to find offsetting revenue from the higher prices it gets from Europe.
    In addition, there currently is no pipeline which could bring natural gas down from Siberia to Russia. There is the problem of just who is going to build it and where the financing will come from. Russia is cut off from Western capital and can’t afford to build it on its own. Capital has fled from Russia because of sanctions.
    So let’s just all take a deep breath here.

  • Thirdsyphon

    I think you’re burying the lede here. The big story is that China has taken a major step towards removing the toxic cloud of pollution that’s afflicting its cities, and more than a billion people can look forward to living longer, healthier lives as a result.

  • El Gringo

    The Russians may not be as happy about the deal when they discover that they can’t jerk the Chinese around like they can the Europeans when they have a diplomatic spat.

  • Displaced_Canuck

    Your units are wrong in this article. Either you mean cubic meters not feet or trillion not billion.Prices in North America are ~$3.50 per thousand cubic foot (mcf) and in the internatioal market LNG prices are below $10 per mcf.

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