How could the second China – Russia gas deal impact prices?

Additional proposed gas exports from Russia to China are unlikely to have a major impact on European gas prices. We see a greater threat arising from the potential long-term price impact of Europe’s diversification away from Russian supplies in the wake of the ongoing Ukraine conflict. In short, this strategic switch away from Russian supplies by European customers themselves is more likely to put upward pressure on European prices than any decision by Russia to divert flows to China.