Russia’s Gas Deal With China Could Undercut BC’s Plans for LNG
The Edmonton Journal reported today that although British Columbia Premier Christy Clark has high hopes for a booming liquified natural gas export industry on British Columbia’s coast, she may be sidestepped by an impending gas deal between Russia and China. The Journal spoke with Leslie Palti-Guzman, senior analyst, global energy and natural resources at New York-based Eurasia Group, on the subject.
The Edmonton Journal reported today that although British Columbia Premier Christy Clark has high hopes for a booming liquified natural gas export industry on British Columbia’s coast, she may be sidestepped by an impending gas deal between Russia and China. The Journal spoke with Leslie Palti-Guzman, senior analyst, global energy and natural resources at New York-based Eurasia Group, on the subject.
As quoted in the publication, Palti-Guzman stated:
As the Ukraine crisis threatens Russian access to western credit in the short term, while likely eroding Russia’s European gas market share over the next decade, Moscow is keen to secure a major new gas export market in Asia, as well as to demonstrate to the West that it has energy consumer options. As a result, Moscow is likely to concede more ground to China on pricing than it has in past iterations of these negotiations. China, for its part, is eager to secure more gas to promote its ambitious environmental agenda of switching from coal to gas-fired power generation.