Did you notice the EU just lost its gas lifeline? Here’s what you should know

Did you notice the EU just lost its gas lifeline? Here’s what you should know

https://www.windtaskforce.org/profiles/blogs/did-you-notice-the-eu-...

By Willem Post

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With one deal in Beijing, Russia redirected eastwards, the energy flows that had run to the West for fifty years.

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The EU’s cheap-gas lifeline just got handed to Beijing instead.

With three signatures, Russia, China and Mongolia rerouted half a century of energy history eastward.

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On Tuesday, the three countries signed a legally binding memorandum for the Power of Siberia 2 pipeline – a roughly 2,600-km line, at an estimated cost of around $13.6 billion, that will carry 50 billion cubic meters (bcm) of natural gas every year through Mongolia into northern China’s industrial heartland. 

While the pricing structure has yet to be fixed, the signatories have effectively redrawn the European energy map.

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For decades, this gas was the bedrock of German and Western European industry, piped from Russia’s Yamal fields in the Arctic through Nord Stream 1 (capacity 55 bcm/y) directly into Germany.

US/UK/EU blew-up Nord Stream 2 (capacity 55 bcm/y) to ensure Norway would greatly increase its much more expensive pipeline natural gas flow to the EU; it would increase the super-expensive LNG from the US.

The Nord Stream 1 and 2 flows (110 bcm/y) could have been going to Europe, but now all of it will go to China.

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Isn’t there already a pipeline to China?

Yes. Power of Siberia 1, which came online in 2019, snakes east from Yakutia into northeastern China.

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RT

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What makes this deal different?

Power of Siberia 2 (dotted line) is different: it will run a more direct route through Mongolia, which will also gain access to the gas, tapping the very Yamal fields in western Siberia that once connected to Germany through the Nord Stream and Yamal-Europe pipelines. Mongolia will earn $billions in transit fees.

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Unlike POS1, which sources Russia’s Asian-facing fields, POS2 will draw gas from Arctic reserves that once fed Europe’s factories.  

In other words, it closes the chapter of Europe as the main customer for Russian gas and hard-wires China as the new anchor market.

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What's the timeline?

The memorandum is binding but still vague. Key details such as pricing formulas, financing structures, and construction deadlines have not been finalized.

One thing is clear though: once the backbone of EU’s growth, the gas will instead be sent into pipelines running east through Mongolia to China.

For Brussels and Berlin, it’s not just a loss of supply but a structural break: the age of cheap Siberian gas for Europe is over.

The myopic West has just been given a rude awakening

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A whole new energy map

As well as the POS2 signing, Moscow also pledged to boost flows on existing lines. 

POS1 volumes will increase from 38 to 44 bcm/y.

Russia’s Far Eastern route, piping gas from the Sakhalin mega-projects, will increase from 10 to 12 bcm/y.

But the big figure is POS2: 50 bcm/y

Add it all together and China will be importing 104 additional bcm/y of Russian gas

For the EU, the symbolism is brutal. The same Arctic molecules that drove the post-war boom and kept German factories competitive are now earmarked for China.

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What does it mean for the EU?

The EU attempted to cut itself off from Russian supply after 2022, in a rupture that was backed by NATO.

Since then, the bloc has been forced to buy US LNG at much higher prices than Russian pipeline gas, triggering an energy price crisis across the bloc and helping drive Germany into recession already for 3 consecutive years.

With P0S2 signed, the option of reversing course and reconnecting Europe to Russian gas has vanished.

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Beijing’s calculation

For years, Chinese leaders hesitated. Beijing worried about becoming overly dependent on Russian energy and feared a dependency on a neighbor for transit. But something shifted.

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Analysts point to two triggers: renewed hostility between the EU and Moscow, which makes the West an unreliable transit for Chinese interests, and US President Donald Trump’s warnings about Chinese access to global LNG markets.

In this light, a fixed Siberian line through Mongolia looks like a hedge – long-term, secure, and beyond US interference.

The agreement also lands amid volatility in the Middle East, including the Israel-Iran confrontation, which rattled Beijing’s faith in seaborne LNG.

Securing a land-based artery of cheap pipeline gas offers stability at a moment of global flux.

By praising the project as “hard connectivity,” Xi made clear that for Beijing, energy corridors are not just economics, but strategy – a way of locking in partnerships and reshaping Eurasia’s balance of power.

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China ‘will completely’ stop buying LNG from US – FT

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The bottom line

The POS2 agreement is more than an energy deal.

It is a strategic redirection of Russia’s Arctic gas – from the pipelines that once powered Europe’s prosperity to a single buyer in the east.

Europe loses the cheap fuel that underpinned its industrial strength for half a century, and with it any realistic opportunity to recover access to Russian gas in the foreseeable future. 

Russia gains a guaranteed outlet-a partnership with China described as being “without limits” by both leaders, while Beijing secures long-term supply on its terms.

The global energy map has been redrawn, and the full consequences will emerge in the near future.

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How Much Electricity Can be Generated with 100 bcm/y?

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A standard conversion can be estimated by using the International Energy Agency's (IEA) figure for Russian gas: 1 bcm = about 10.6 TWh. 
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It's important to note that the energy content varies.
For example, the IEA uses a slightly higher value for Qatar's natural gas: 1 bcm = about 11.5 TWh.
Therefore, a precise conversion requires knowing the specific origin and composition of the natural gas. 
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If 100 bcm/y of gas were used in 60%-efficient CCGT power plants, about 100 bcm/y x 10.6 TWh/bcm x 0.6 efficiency = 636 TWh/y would be generated. 
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For comparison:
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China generated about 10,073 TWh of electricity, all sources, in 2024, a new record for the country.
China generated about 1,826 TWh of wind and solar electricity in 2024, a new record for the country.
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Such a high percentage (18.3%) created significant disturbances on the China National Grid, that required:
1) Greatly reinforcing/extending the grid to connect the far-flung W/S systems
2) More and more of traditional power plant capacity (MW)) to quickly vary their outputs, on a less than minute-by-minute basis, 24/7/365, to inefficiently counteract the huge variations (TWh) of W/S electricity generation (more Btu/kWh, more c/kWh, more CO2/kWh, more wear and tear/kW)

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Comment by Willem Post 17 hours ago

The UK, Germany, and France are in deep do-do, already for several years, because wind and solar are not only expensive, even after 50% subsidies, but the is an 11 c/kW adder, to account for the full cost of energy, FCOE

The more wind and solar on the grid, the worse it gets.

This has been pointed out by enegy systems analysts since at least 2000, 25 years ago, including me.

Comment by Dan McKay 17 hours ago

 

Maine as Third World Country:

CMP Transmission Rate Skyrockets 19.6% Due to Wind Power

 

Click here to read how the Maine ratepayer has been sold down the river by the Angus King cabal.

Maine Center For Public Interest Reporting – Three Part Series: A CRITICAL LOOK AT MAINE’S WIND ACT

******** IF LINKS BELOW DON'T WORK, GOOGLE THEM*********

(excerpts) From Part 1 – On Maine’s Wind Law “Once the committee passed the wind energy bill on to the full House and Senate, lawmakers there didn’t even debate it. They passed it unanimously and with no discussion. House Majority Leader Hannah Pingree, a Democrat from North Haven, says legislators probably didn’t know how many turbines would be constructed in Maine if the law’s goals were met." . – Maine Center for Public Interest Reporting, August 2010 https://www.pinetreewatchdog.org/wind-power-bandwagon-hits-bumps-in-the-road-3/From Part 2 – On Wind and Oil Yet using wind energy doesn’t lower dependence on imported foreign oil. That’s because the majority of imported oil in Maine is used for heating and transportation. And switching our dependence from foreign oil to Maine-produced electricity isn’t likely to happen very soon, says Bartlett. “Right now, people can’t switch to electric cars and heating – if they did, we’d be in trouble.” So was one of the fundamental premises of the task force false, or at least misleading?" https://www.pinetreewatchdog.org/wind-swept-task-force-set-the-rules/From Part 3 – On Wind-Required New Transmission Lines Finally, the building of enormous, high-voltage transmission lines that the regional electricity system operator says are required to move substantial amounts of wind power to markets south of Maine was never even discussed by the task force – an omission that Mills said will come to haunt the state.“If you try to put 2,500 or 3,000 megawatts in northern or eastern Maine – oh, my god, try to build the transmission!” said Mills. “It’s not just the towers, it’s the lines – that’s when I begin to think that the goal is a little farfetched.” https://www.pinetreewatchdog.org/flaws-in-bill-like-skating-with-dull-skates/

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Hannah Pingree on the Maine expedited wind law

Hannah Pingree - Director of Maine's Office of Innovation and the Future

"Once the committee passed the wind energy bill on to the full House and Senate, lawmakers there didn’t even debate it. They passed it unanimously and with no discussion. House Majority Leader Hannah Pingree, a Democrat from North Haven, says legislators probably didn’t know how many turbines would be constructed in Maine."

https://pinetreewatch.org/wind-power-bandwagon-hits-bumps-in-the-road-3/

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