The strategic implications of the second Russia–China gas deal on the European gas market

At the end of 2014, Russia and China signed a framework for their second natural gas agreement. According to this agreement, Russia will supply 30 billion cubic metres of gas to China over 30 years via the future Altai pipeline, which will connect Asian and European gas markets. This paper analyses the long-term impacts of this second agreement on the European gas market, based on a modified Hotelling model. We found that gas exports to China...