Signing of deal on gas supply route to China via Altai is 'postponed indefinitely'

Vedomosti newspaper today cited two federal officials saying that the signing of the gas supply contract with China via the Altai pipeline - also  known as Power of Siberia 2 - is being postponed for an indefinite period. 

The growth of the Chinese economy is slowing down and China is reviewing its energy balance, explained the officials.

The move - a significant blow to Russia - arises because demand for gas in China is decreasing, it is said.  

Combined with the fall in oil prices, this means it is now more advantageous for China to buy LNG from Australia,  said Valery Nesterov, an analyst from Sberbank CIB. 

According to BP, in 2012-2013 the consumption of gas in China grew by 12-13 percent and in 2014 by 8.5 percent. In the first six months of 2015 consumption grew by only two percent,  he said.

The pipeline route over the Ukok Plateau in the Altai Mountains - site of ancient burials - had aroused opposition from environmentalists.