1 year ago
Russia, China Ink Deal For New Gas Pipeline
Russia and China agreed to build a new gas pipeline called Power of Siberia 2, designed to transport more Russian gas to China.
Gazprom announced a legally binding agreement.
The pipeline will transport 50 billion cubic meters of gas annually for 30 years.
The price for the gas will be lower than what Gazprom currently charges in Europe.
However, Beijing has yet to confirm details of the pronouncements.
The deal is considered a win for Russia, boosting ties with China amidst Western sanctions.
China has been cautious, with slowing gas demand growth.
Unanswered questions include the price, volumes, and construction timeline.
Russia's Gazprom signed a legally binding agreement for the Power of Siberia 2 pipeline.
The pipeline will transport up to 50 billion cubic meters of gas annually for 30 years.
The gas price will be lower than that charged to European customers.
Gazprom will increase flows via the existing Power of Siberia route by 6 billion cubic meters.
Financial details and the construction timeline are yet to be disclosed.
- Who
- Russia and China
- What
- Signed agreement for the Power of Siberia 2 gas pipeline
- Where
- Between Russia and China
- When
- Recently
- Why
- To boost energy cooperation and trade
Key facts
- Pipeline Name
- Power of Siberia 2
- Annual Capacity
- 50 billion cubic meters
- Existing Pipeline Capacity
- 38 billion cubic meters
- Existing Pipeline Increase
- 6 billion cubic meters
- Far Eastern link capacity
- Above 10 billion cubic meters a year
Timeline
Russia threatened Ukraine, prompting U.S. and EU economic pressure.
The U.S. eyed tariffs; the EU imposed sanctions on Russia.
China then boosted oil purchases, angering the U.S.
Finally, Russia and China inked a major gas pipeline deal.
Quotes
Alexey Miller
Chief Executive Officer of Gazprom
“The project to build Power of Siberia 2 and the Soyuz-Vostok gas pipeline, the transit link through Mongolia, as well as the gas shipment capacity in China, is going to become the largest, the most massive and capital-intensive gas project in the world.”
NDTV
Sources
China, Russia sign mega gas pipeline deal amid West’s growing frustration over Moscow’s fuel pacts
After Petroleum, China All Set To Become Largest Importer Of Russian Gas Replacing Europe
Russia, China Sign Deal For New Gas Pipeline In Major Political Win
Russia, China agree to pipeline plan, leaving Beijing with the upper hand
What will you do, Trump? Putin thumbs his nose at US with a MASSIVE China gas pipeline deal, while US prez punishes India
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