Russian state-owned Gazprom PJSC’s latest 30-year supply deal with China National Petroleum Corp. (CNPC) for 10 billion cubic meters (Bcm) per year via a new pipeline, the Far Eastern route, could eventually increase Russia’s capacity to China by 48 Bcm/year and impact China’s future demand for liquefied natural gas (LNG).

The deal comes at a time of increased tensions between the West and Russia over its standoff with Ukraine, Nord Stream 2 and Gazprom’s fluctuating pipeline deliveries to Europe.

The agreement won’t affect European gas deliveries as supplies would be sourced from the Far Eastern route, but it could impact LNG imports into China, according to Kpler. 

“This deal is expected to weigh on the outlook for LNG imports into China, especially as the...