China-Australia relations: more Russian pipeline gas could be ‘political hedge’ for Beijing
- China is becoming increasingly reliant on liquefied natural gas (LNG), and much of it comes from Australia and the United States, putting the supply at risk of trade tensions
- Power of Siberia 2 gas pipeline could eventually bring billions of cubic metres of gas to northern China, but ‘they can’t do it overnight’
China is seeking to fast-track a second channel to double the supply of natural gas from “comprehensive strategic partner” Russia, which could give Beijing an upper hand in dealing with Canberra, according to analysts.
“Just as it makes sense for the EU to use [liquefied natural gas] as a political hedge … it makes sense for China to use Russian pipeline gas as a political hedge or backup for its high reliance on LNG – large amounts of which come from Australia and the United States, with whom Beijing’s relations have deteriorated over the past years,” said Henning Gloystein, director of energy, climate and resources at Eurasia Group.
The world’s second-largest economy imported 43 per cent of its gas requirements in 2020, including 89 billion cubic metres of LNG and 46 billion cubic metres of pipeline gas, according to the General Administration of Customs. About 43 per cent of its LNG imports are from Australia.