1455 GMT - The Power of Siberia 2 project could reshape China's energy landscape, says Rabobank's Florence Schmit. Russia and China this week signed a legally binding memorandum to build the pipeline, as Western sanctions on the Kremlin pushed the two countries closer. If the project materializes, pipeline imports could surge to meet nearly 30% of Beijing's gas demand from just 19% currently, according to the energy strategist. The impact on gas markets is now minimal due to the long-term nature of the project. However, "a shift toward cheaper, fixed pipeline gas from Russia could crowd out U.S. volumes, especially as China continues to diversify its energy sources and tighten its import strategy," Schmit says. (giulia.petroni@wsj.com)

(END) Dow Jones Newswires

September 03, 2025 10:55 ET (14:55 GMT)

Copyright (c) 2025 Dow Jones & Company, Inc.