When the Power of Siberia 2 pipeline is completed, China could account for over 60 percent of Russia’s total prewar gas exports to the EU.
China and Russia have greenlit a new cross-border natural gas pipeline in a major win for Russian President Vladimir Putin, though questions about who pays what and at what price remain unresolved.
Once completed, the proposed Power of Siberia 2 pipeline could pump 50 billion cubic meters (bcm) of gas per year into China—about 61 percent more than the 31 bcm delivered by the original Power of Siberia line in 2024. The new route would run through Mongolia from western Siberia’s Yamal fields.Why It Matters
Russia has turned to China to offset collapsing European gas sales, which have dropped by more than 70 percent since 2021. The European Union plans to phase out Russian fossil fuel imports entirely by 2027 in response to the invasion of Ukraine.
Beijing, while presenting itself as neutral in the conflict, has become Moscow’s largest energy customer. Trade between the two countries has set new records each year since Moscow’s 2022 invasion, with China buying gas at steep discount and sales helping sustain Russia’s war chest amid sanctions and export controls from the U.S. and European Union. NATO has called China a «decisive enabler» of Russia’s war effort.What To Know
Russian majority state-owned energy giant Gazprom and China National Petroleum Corporation signed four documents on Tuesday, including a memorandum of understanding to expand areas of interaction, Gazprom said in a statement.
