Russia to boost gas exports to China shutting out US suppliers

Russia is poised to dramatically increase its gas exports to China, a move that could reshape the global liquefied natural gas (LNG) market and marginalize U.S. suppliers. Bloomberg reports that Moscow’s plan to expand pipeline gas deliveries could double the volume sent to its Asian neighbor by the 2030s. During a visit to China, President Vladimir Putin confirmed that Russia and Beijing have agreed on a major new pipeline crossing Mongolia, which will substantially augment existing supplies.

The proposed Power of Siberia 2 pipeline is slated to become operational by 2030. Combined with other supply boosts, it could displace up to half of the more than 40 million tons of LNG China currently imports each year, including shipments from the United States. This development signals to Washington that Beijing does not need U.S. LNG for its long‑term growth, especially as Sino‑U.S. relations continue to deteriorate. China appears comfortable deepening its reliance on Russian gas, which is expected to meet 20 % of its gas demand by the early 2030s, up from roughly 10 % today.

The shift also reflects a response to U.S. sanctions; China recently received its first shipment from Russia’s Arctic LNG 2 project despite those restrictions. Russian officials have accused Western governments of placing geopolitics above fair competition, citing the freezing of Russian sovereign assets and efforts to curb its energy exports through economic measures.

Analysts warn that the heightened dependence on Russian gas could upend the global LNG market. For LNG projects still under development, this could represent a major setback, according to Wall Street research and brokerage firm AB Bernstein. As Russia seeks to expand its energy exports, it is turning to more reliable customers, particularly for pipeline gas, which demands substantial infrastructure investment and long‑term cooperation. The completion of the Power of Siberia 2 pipeline is central to this strategy and is likely to have far‑reaching consequences for the global energy market.