Russia and China are progressing in their negotiations over the Power of Siberia-2 gas pipeline, yet they are unlikely to finalize the contract before May 9, according to Sergey Tsivilev, Russia’s Minister of Energy.
The pipeline, designed to transport natural gas from Yamal and Western Siberia to China, remains a strategic energy project for both nations.
Speaking to journalists, Minister Tsivilev confirmed that discussions are actively underway regarding the pipeline’s route. One of the key considerations is whether the pipeline should pass through Mongolia or take a direct route from Russia to China via the Zabaykalsk border.
“The option of passing through Mongolia to China is now being discussed. The contract is being worked out by companies.
“They are in an active stage of negotiations, so, I think, it is unlikely that one or two days are left that they will have time to do this before May 9.”
Sergey Tsivilev, Russia’s Minister of Energy
The pipeline is expected to have a maximum capacity of 50 billion cubic meters per year, making it a major infrastructural development in Russia’s gas exports to Asia.
The project is being developed jointly by Gazprom and China National Petroleum Corporation (CNPC).
In December 2023, Russia announced the final approval of the pipeline construction conditions.
Since then, search work has been ongoing to determine the best possible section for laying the pipeline through Mongolia. This route would offer logistical advantages but also requires extensive feasibility studies.
China has expressed interest in ensuring a cost-effective and efficient pipeline route, with the possibility of directly transporting gas through Russia to the Chinese border near Zabaykalsk.
Zhang Hanhui, China’s Ambassador Extraordinary and Plenipotentiary to Russia, noted that discussions remain open on the best pathway.
“Russia and China continue to discuss options for the Power of Siberia-2 route, and it will be easier to agree on the price of deliveries between the parties.”
Zhang Hanhui, China’s Ambassador Extraordinary and Plenipotentiary to Russia
China’s concerns primarily revolve around pricing negotiations and optimizing the project’s logistics to ensure reliability in gas supplies.
Given the increasing demand for natural gas in China, this pipeline is anticipated to play a crucial role in energy cooperation between the two countries.
Economic and Strategic Importance
The Power of Siberia-2 pipeline comes amid broader efforts by Russia to diversify its gas exports, particularly in light of evolving geopolitical dynamics.
As Europe moves to reduce dependence on Russian energy, Moscow is pivoting more aggressively toward the Asian markets, with China emerging as a primary consumer.
This pipeline complements the existing Power of Siberia-1 pipeline, which already supplies gas from Eastern Siberia to China, reinforcing energy security and trade relations.
The additional capacity from Power of Siberia-2 will significantly boost Russian gas supplies to China, potentially solidifying long-term economic ties.
Despite the strategic importance of this project, the contract negotiations have encountered delays, with discussions around pricing and technical specifications continuing.
The complexity of laying the pipeline through Mongolia also requires extensive engineering assessments.
As Minister Tsivilev highlighted, the companies involved—Gazprom and CNPC—are still finalizing key details, making it unlikely for the contract to be signed in the immediate term.
While both Russia and China have reiterated their commitment to the Power of Siberia-2 pipeline, the finalization of contracts could take several more months.
Once completed, the pipeline will serve as a critical energy conduit connecting Russian gas reserves to China’s rapidly growing energy market.
The completion of Power of Siberia-2 could mark a new era of energy cooperation between the two nations, reinforcing their economic and strategic alignment in global energy markets.
READ ALSO: Wencai Zhang Calls on Finance Minister, Pledges Stronger World Bank-Ghana Partnership
