Russia and China Advance New Gas Pipeline Deal

Russia and China have taken a major step in deepening their energy ties, giving the green light to the massive Power of Siberia 2 gas pipeline. The project, announced by Gazprom, would connect Russia’s Arctic gas fields in Yamal to China via Mongolia, supplying up to 50 billion cubic meters of natural gas every year. It marks one of the most ambitious cross-border energy initiatives in decades.

Alongside this new deal, Moscow and Beijing also agreed to expand the capacity of the existing Power of Siberia pipeline, which currently delivers gas from Eastern Siberia. Flows will rise from 38 to 44 billion cubic meters annually, further cementing China’s position as Russia’s top energy customer.

The agreement came in the form of a legally binding memorandum, though important details remain unresolved. The price of gas, the construction timeline, and which companies will carry out the work are still under discussion. These sticking points reflect the sheer scale and complexity of the project, which would span thousands of kilometres across harsh terrain.