Russia and China Sign Historic Agreement on the Construction of the Power of Siberia 2 Pipeline: A New Stage in Energy Cooperation
In a significant development marking the deepening of long-term collaboration between Russia and China, the Russian company Gazprom and China’s CNPC formally signed a legally binding memorandum to commence the large-scale project of constructing the Power of Siberia 2 pipeline.
This agreement envisions supplying natural gas from the Yamal fields to China, with the transit route passing through Mongolia, thereby opening new avenues for energy security and economic cooperation between the two nations.
According to Gazprom CEO Aleksei Miller, the planned volume of natural gas supplies will reach 50 billion cubic meters annually, with the contract lasting at least 30 years.
Additionally, there is an agreement to increase gas supplies via the Power of Siberia pipeline from 38 to 44 billion cubic meters per year, reflecting both countries’ ambitions to strengthen energy ties further in the future.
Concerning payment methods, Miller stated that transactions will be split evenly—50% in rubles and 50% in foreign currency.
Moreover, the price for Chinese consumers is reportedly more favorable than for European customers, owing to a supposedly shorter pipeline route and lower transportation costs.
This project signifies a strategic step toward expanding energy relations, emphasizing mutual dependence and strengthening the geopolitical positions of both Russia and China.