Russia and China Agree to Buildโ Major New Gas Pipeline,โข ‘Power of โฃSiberia 2′
HEIHE, CHINA – โข Russia and โChina โขhave โreached an agreementโ 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 โฃby โฃrussian newswires. The deal comes as Russia seeks to redirect energy exports away fromโข Europe following the invasion of Ukraine, and asโ China navigates itsโค growing โขenergy needs and geopolitical relationships.
Theโ pipeline,along with the Soyuz-Vostok transit link throughโฃ Mongolia,is projected โtoโค become the “largest,the most massive and capital-intensive gasโ project in the world,” Miller stated. While details โคremain scarce,the agreement marks a significant diplomatic win for Presidentโ Vladimir Putin and underscores the โstrengthening ties between Russia andโค China sinceโฃ 2022 amidโ Western sanctions.
Discussions โsurrounding Power of Siberia 2 have been protracted, with China expressing caution due to slowingโข gas demand growth andโ concerns โabout over-reliance โonโฃ a single supplier. Key details, including pricing, volume versatility, โฃconstruction timelines, and financial arrangements, โremain unresolved. It is โcurrently unclear whether China will be able to purchase flexible volumes or will be obligated to buy the pipeline’s full capacity.
Gazpromโข has also agreed to increase gas flows to China via theโ existing Power of Siberia pipeline by an additional 6 billionโข cubic metersโฃ per year, bringing the total annual capacity to 38 billion cubic โฃmeters.โข Flows through the planned Far Easternโข link, slated to begin in 2027, โwill exceed the โขinitiallyโ planned 10 billion cubicโ meters annually.
The agreement โwas reachedโค during a meeting of the Shanghai Cooperation Organizationโข security bloc, a period of heightened global trade tensions as the โtrump administration implements new tariffs.