Russia and China Sign Legally Binding Memorandum for Power of Siberia 2 Pipeline

Strategic Insights -

A significant breakthrough in international energy cooperation has been achieved as Russia and China signed a legally binding memorandum to construct the Power of Siberia 2 pipeline. This ambitious gas project aims to supply 50 billion cubic meters of gas annually to China from Russia's Arctic gas fields, surpassing the existing Power of Siberia pipeline's capacity. The agreement is a testament to the strengthening partnership between Russia and China, particularly in the energy sector.

Key Takeaways:

  • The Power of Siberia 2 pipeline is expected to supply 50 billion cubic meters of gas annually to China from Russia's Arctic gas fields.
  • The agreement aims to increase supplies via the existing Power of Siberia pipeline to 44 billion cubic meters a year from 38 billion cubic meters.
  • The Soyuz Vostok transit segment will traverse through Mongolia, connecting the Power of Siberia 2 pipeline to the existing pipeline.
  • Alexei Miller, Gazprom CEO, stated that the agreement includes building the Power of Siberia 2 and the Soyuz Vostok transit segment.
  • The pricing and construction responsibilities remain unclear, and the price of gas supplied via the pipeline will be agreed upon separately.

Statistics:

  • The Power of Siberia 2 pipeline is expected to supply 50 billion cubic meters of gas annually to China.
  • The existing Power of Siberia pipeline has a capacity of 38 billion cubic meters of gas per year, which will be increased to 44 billion cubic meters under the new agreement.
  • Russia is the world's largest producer of natural resources, while China is the world's biggest consumer of energy.
  • The Power of Siberia 2 pipeline could reshape the global energy map, with significant implications for the energy market.

Sources:

  • HT Digital Content Services
  • Hindustan Times