Russia and China Agree to Build Major New Gas Pipeline, ‘Power of Siberia 2′
HEIHE, CHINA – Russia and China have reached an agreement to build the “Power of Siberia 2” gas pipeline, a mega-project that has been stalled for years, according to statements from Gazprom CEO Alexei Miller reported by russian newswires. The deal comes as Russia seeks to redirect energy exports away from Europe following the invasion of Ukraine, and as China navigates its growing energy needs and geopolitical relationships.
The pipeline,along with the Soyuz-Vostok transit link through Mongolia,is projected to become the “largest,the most massive and capital-intensive gas project in the world,” Miller stated. While details remain scarce,the agreement marks a significant diplomatic win for President Vladimir Putin and underscores the strengthening ties between Russia and China since 2022 amid Western sanctions.
Discussions surrounding Power of Siberia 2 have been protracted, with China expressing caution due to slowing gas demand growth and concerns about over-reliance on a single supplier. Key details, including pricing, volume versatility, construction timelines, and financial arrangements, remain unresolved. It is currently unclear whether China will be able to purchase flexible volumes or will be obligated to buy the pipeline’s full capacity.
Gazprom has also agreed to increase gas flows to China via the existing Power of Siberia pipeline by an additional 6 billion cubic meters per year, bringing the total annual capacity to 38 billion cubic meters. Flows through the planned Far Eastern link, slated to begin in 2027, will exceed the initially planned 10 billion cubic meters annually.
The agreement was reached during a meeting of the Shanghai Cooperation Organization security bloc, a period of heightened global trade tensions as the trump administration implements new tariffs.