Gazprom Signs Binding Agreement for Power of Siberia 2 Pipeline to China via Mongolia

Russia’s Gazprom PJSC has officially entered a legally binding agreement to construct the Power of Siberia 2 gas pipeline, linking Russia to China through Mongolia. This pivotal deal marks a significant advancement in Russia-China energy relations and underscores Gazprom’s commitment to expanding its export capabilities.

The Power of Siberia 2 gas pipeline will boast a remarkable capacity of up to 50 billion cubic meters of natural gas annually, projected to sustain these volumes for up to 30 years. As one of the largest and most capital-intensive gas projects in the world, this initiative highlights its strategic relevance not only for Russia but also for the energy landscape in China.

Moreover, the agreement encompasses the enhancement of deliveries through existing gas routes, reflecting a broader strategy to amplify Russian gas exports to China and diversify supply lines. Gazprom plans to initiate operations of the pipeline by around 2027, with an estimated increase in gas flows to China, adding roughly 10 billion cubic meters annually from Far Eastern routes.

This development signals a transformative moment in global gas trade, facilitating Russia's shift of gas exports from Europe to the burgeoning Chinese market. Such a transition will significantly bolster energy ties between these two nations, creating new dynamics in the landscape of international gas supply.