New Russia-China gas agreement is being misrepresented: The Financial Post

The Post says Beijing has made it clear it will not be a pawn in Vladimir Putin’s great global gas game.

The Post quotes the Wood Mackenzie consultancy, saying “the $400 billion, 30-year deal announced last week certainly has global ramifications.”

However it also says, Beijing must be mindful of lessons learned from Europe and it must never leave the keys to its energy security in the hands of the dictatorial Russian runt.

There are already reports that China is stockpiling crude oil to account for supply disruptions in the event of sanctions on Moscow, or geopolitical tensions in the South China Sea.

Scotiabank Economics and Commodity Market Specialist, Patricia Mohr says many big buyers in Asia wish to have a diversified source of gas supply, and B.C. LNG would offer that with relatively low shipping costs to market.

The article also focuses on what it calls “China’s insatiable thirst for natural gas”, noting the Beijing demand is set to grow by more than two and half times by 2020, reaching about 307 billion cubic meters.

That’s more than eight times the annual amount attached to the new deal with Moscow, and China’s war on pollution could see an additional demand for natural gas as it moves away from coal.