Russia and China have signed a legally binding deal to build the Power of Siberia 2 pipeline, according to Gazprom. The project is one of the biggest gas plans in the world and could change global energy flows.
Gazprom CEO Alexei Miller said the agreement includes both the Power of Siberia 2 and the Soyuz Vostok transit line through Mongolia. Once finished, the pipeline could deliver up to 50 billion cubic meters of gas each year from Russia’s Arctic fields to China, for the next 30 years. Miller also claimed the gas would be sold at a lower price than what Gazprom charges its European buyers.
Russia Inks More Than 20 Partnership Deals With China
However, China has not confirmed these details. State news agency Xinhua reported that Russia and China signed over 20 cooperation deals, including energy projects, but it did not specifically mention the new pipeline.
Talks about the project have dragged on for years. Russia is eager to push it forward as gas sales to Europe shrink after its invasion of Ukraine, with the EU planning a complete ban by 2027. China, meanwhile, has been cautious, as its gas demand growth is slowing and it does not want to rely too heavily on one supplier.
Any progress on the Power of Siberia 2 project would be a major diplomatic win for President Vladimir Putin. It would also show how close Russia and China have become since 2022, as Moscow deals with Western sanctions. The recent Shanghai Cooperation Organization (SCO) meeting took place while the Trump administration raised its tough trade talk and imposed tariffs on countries worldwide.
A New Pipeline to Transfer gas From Russia to China?
Still, many questions remain. Gazprom CEO Alexei Miller’s comments did not clarify the price of gas, whether China can buy smaller amounts instead of the full capacity, or when construction and deliveries might start. Financial terms have also not been revealed.
Miller called the Power of Siberia 2 and the Soyuz-Vostok pipeline through Mongolia the biggest and most costly gas project in the world. Once finished, it could supply huge volumes of gas to China.
Gazprom also plans to increase flows through the existing Power of Siberia 1 line by 6 billion cubic meters a year, adding to its current 38 bcm capacity. Meanwhile, another pipeline link in Russia’s Far East, set to begin in 2027, is now expected to deliver more than the originally planned 10 bcm annually.
Also Read: Putin & Xi Strengthen Ties With Major Russia-China Gas Deal as US Tensions Rise
