The Caspian state clearly sees room for growth, with gas exports to China at a modest 4 bcm annually.
For Moscow, this pipeline would be a lifeline in its attempt to solidify ties with Beijing and fill the gaping revenue hole left by Europe. But let’s not get ahead of ourselves—China isn’t about to put all its energy eggs in Russia’s basket, and it’s no stranger to using competition to negotiate prices down.
China’s gas hunger is driving the moves as it plays the long game. Russia must decide whether its latest bet will pay off.