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Natural gas

Russia and China Sign Major Gas Deal Amid US Tariffs on India

Strategic Insights

— 1 min read

Russian President Vladimir Putin met his Chinese counterpart and 22 agreements were signed between the two countries, including a deal on strategic cooperation between Gazprom and China National Petroleum Corporation. A gas pipeline will be built to supply gas from the vast Bovanenkovo and Kharasavey gas fields of northern Russia across the wilderness of Siberia to Mongolia and then to China. The deal includes increasing gas supplies to China from 38 billion cubic meters (bcm) to 44 billion bcm a year. This new pipeline, Power of Siberia 2, will be the world's biggest and most capital-intensive gas project.

Key Takeaways:

  • 22 agreements were signed between Russia and China, including a deal on strategic cooperation between Gazprom and China National Petroleum Corporation.
  • A gas pipeline will be built to supply gas from the vast Bovanenkovo and Kharasavey gas fields of northern Russia to China via Mongolia.
  • Gas supplies to China will increase from 38 billion cubic meters (bcm) to 44 billion bcm a year.
  • The Power of Siberia 2 pipeline will be the world's biggest and most capital-intensive gas project.
  • The deal was signed amid US tariffs on Indian oil purchases from Russia.
  • Gazprom CEO Alexei Miller confirmed the agreement, stating that a legally binding memorandum was signed on the construction of the Power of Siberia 2 gas pipeline and the Soyuz Vostok transit gas pipeline through Mongolia.

Statistics:

  • 22 agreements were signed between Russia and China.
  • 38 billion cubic meters (bcm) is the current gas supply to China.
  • 44 billion cubic meters (bcm) is the new gas supply target to China.
  • The Power of Siberia 2 pipeline will be the world's biggest gas project.
  • The pipeline will span from northern Russia to China via Mongolia.

Sources:

  • [TASS news agency: "Gazprom CEO confirms deal to increase gas supplies to China"]
  • [Contify.com: "Russia, China sign 22 agreements, including gas pipeline deal"]
  • [DNA (Daily News & Analysis) : "Russia, China Sign 22 Agreements Worth Billions, Including Gas Pipeline Deal"]
  • [Contify.com: "Russia's Putin and China's Xi sign 22 agreements worth billions of dollars"]

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