Deputy PM notes progress on key gas pipeline by Putin and Xi
Russia and China are looking to accelerate the development of the Power of Siberia 2 gas pipeline project, as stated by Deputy Prime Minister Aleksandr Novak. The announcement came on Thursday following high-level discussions in Moscow during...
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Russia and China are looking to accelerate the development of the Power of Siberia 2 gas pipeline project, as stated by Deputy Prime Minister Aleksandr Novak.
The announcement came on Thursday following high-level discussions in Moscow during Xi Jinping’s official visit to Russia for the May 9 Victory Day celebrations, which commemorate the 80th anniversary of the Soviet Union's victory over Nazi Germany.
The ambitious pipeline is anticipated to enable the transportation of up to 50 billion cubic meters of natural gas each year from northern Russia to China via Mongolia. However, the project has faced delays due to ongoing negotiations regarding pricing and the pipeline's route.
"There were discussions, it is indeed an important project. A certain amount of work has already been done, including the feasibility study… The leaders gave instructions to expedite the process," Novak, a former energy minister, remarked.
Moscow is keen to advance the project as part of its strategy to diversify energy export markets in light of Western sanctions and decreasing demand from Europe. For Beijing, the pipeline represents a reliable energy source to meet its growing consumption needs.
Currently, gas is supplied to China through the Power of Siberia pipeline, which is part of a $400 billion, 30-year agreement between Gazprom and CNPC established in 2014. Deliveries began in 2019, and the pipeline achieved its full operational capacity by December, making Russia China's top supplier of natural gas.
Despite the unparalleled Western sanctions imposed on Moscow, economic ties between Russia and China have continued to strengthen. In 2024, bilateral trade reached an unprecedented $245 billion.
Gazprom anticipates further growth in gas exports due to increasing demand. In December, Novak revealed that Russia had initiated the development of a new gas pipeline to China through Kazakhstan. He noted that once all pipelines are fully operational, Russian gas supplies to the Asian giant could potentially reach nearly 100 billion cubic meters annually.
Allen M Lee for TROIB News
The announcement came on Thursday following high-level discussions in Moscow during Xi Jinping’s official visit to Russia for the May 9 Victory Day celebrations, which commemorate the 80th anniversary of the Soviet Union's victory over Nazi Germany.
The ambitious pipeline is anticipated to enable the transportation of up to 50 billion cubic meters of natural gas each year from northern Russia to China via Mongolia. However, the project has faced delays due to ongoing negotiations regarding pricing and the pipeline's route.
"There were discussions, it is indeed an important project. A certain amount of work has already been done, including the feasibility study… The leaders gave instructions to expedite the process," Novak, a former energy minister, remarked.
Moscow is keen to advance the project as part of its strategy to diversify energy export markets in light of Western sanctions and decreasing demand from Europe. For Beijing, the pipeline represents a reliable energy source to meet its growing consumption needs.
Currently, gas is supplied to China through the Power of Siberia pipeline, which is part of a $400 billion, 30-year agreement between Gazprom and CNPC established in 2014. Deliveries began in 2019, and the pipeline achieved its full operational capacity by December, making Russia China's top supplier of natural gas.
Despite the unparalleled Western sanctions imposed on Moscow, economic ties between Russia and China have continued to strengthen. In 2024, bilateral trade reached an unprecedented $245 billion.
Gazprom anticipates further growth in gas exports due to increasing demand. In December, Novak revealed that Russia had initiated the development of a new gas pipeline to China through Kazakhstan. He noted that once all pipelines are fully operational, Russian gas supplies to the Asian giant could potentially reach nearly 100 billion cubic meters annually.
Allen M Lee for TROIB News
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