30 September 2014
The proposed Altai natural gas pipeline project could ease the effects of western sanctions on the Russian economy, while China could gain from cheaper gas prices to meet its energy demand, experts said.
The Altai gas pipeline has been the subject of intergovernmental talks between Russia and China since 2006.
When the two countries could not agree on the price of gas in 2008, the project was indefinitely postponed. However, when the $400 billion agreement for the ‘Power of Siberia’ gas pipeline project was signed between Russia and China in May 2014, the Altai project came back onto the agenda once again and an agreement is expected to be signed this November.
“The Altai pipeline deal will help Russia cushion any further impact of Western-led sanctions that can potentially undermine Russia’s energy exports,” said Collin Koh Swee Lean, associate research fellow at the Military Studies Programme of Nanyang Technological University in Singapore.
IDSS / RSIS / Online
Last updated on 02/10/2014