Gazprom and CNPC announced they would start gas supplies via the yet to be built Power of Siberia pipeline on 20 December 2019. This is early in the previously agreed 2019 2021 start up window. The gas supply deal is significant in balancing China s long term gas supply and demand. However Russian gas exports will face challenges from cheap China domestic supplies in the near term. Given competition from domestic gas we think initial volumes could be small accommodating seasonal demand swings in China s northern markets. Potential for piped gas supply could discourage China's requirement for LNG. The earlier start up and ramp up of Russian gas exports could partially cause China s LNG demand growth to slow after 2020.