Reuters: Russia Likely to Scale Down China Gas Supply Plans

Russia is likely to scale back volumes of gas it plans to ship to China later this decade, sources close to energy giant Gazprom say, due to the dive in global energy prices and uncertainty hanging over the Chinese economy.

The sources insist the hugely expensive pipeline project - part of President Vladimir Putin's strategic shift eastwards - will go ahead on time. However, they acknowledge sales to China will initially be lower than envisaged when Moscow reached the $400 billion (279 billion pound) deal with Beijing in May 2014.

"We will start fulfilling the deal in 2019, but the volumes could be less that initially expected," a source at Gazprom told Reuters.

At the time of the deal, crude oil was trading above $100 a barrel but has since plunged to $30. In this period growth in the Chinese economy has also slowed sharply, with its currency falling and its stock market now in turmoil. MORE