Strategic Energy Cooperation: Mongolia, Russia, and China Strengthen Ties

Strategic Insights -

Mongolia's Prime Minister Zandanshatar Gombojav and Russian President Putin led the way in strengthening trilateral energy cooperation among their countries during the 10th Eastern Economic Forum in Vladivostok. The landmark agreement on the Power of Siberia 2 gas pipeline marked a significant milestone in regional energy infrastructure development. As part of this initiative, Russia's Gazprom and China's National Petroleum Corporation (CNPC) signed a legally binding memorandum to lay a gas pipeline through Mongolian territory, further cementing the strategic partnership. The agreement aims to introduce natural gas infrastructure in Ulaanbaatar, addressing the city's pressing air pollution and energy sustainability challenges.

Key Takeaways:

  • The trilateral agreement on the Power of Siberia 2 gas pipeline was signed by Mongolian Deputy Prime Minister Amarsaikhan Sainbuyan and Deputy Chairman of the Gazprom Management Committee Vitaly Markelov during the 10th Eastern Economic Forum in Vladivostok.
  • The pipeline is expected to generate substantial revenue for the Mongolian state budget, create thousands of jobs, and help reduce air pollution in Ulaanbaatar.
  • The Power of Siberia 1 pipeline in China's Heilongjiang province required the development of new gas fields on the Russian side, involving extensive infrastructure work and investment.
  • In contrast, Power of Siberia-2 will utilize existing deposits, eliminating the need for new extraction.
  • The pipeline is planned to be laid underground across the Mongolian steppes, a region known for its harsh natural climate and challenging terrain.
  • A joint working group with representatives from Mongolia, Russia, and China will be formed to oversee negotiations on financing strategies and determining the ownership structure among the countries.
  • The project is expected to have a long-term impact on regional energy security and economic development, as Morganian Professor Ulambayar Denzenlkham highlights the significant progress made in expanding port capacity in the Russian Far East.

Statistics:

  • Over 2,740 agreements were signed during the Eastern Economic Forum from 2015 to 2025.
  • The total value of these agreements is approximately RUB 5.5 trillion (USD 68 billion).
  • Participation in the forum grew significantly, with over 1,500 delegates from 25 countries in 2016 and more than 7,000 delegates from 75 countries in 2025.
  • The Power of Siberia-2 gas pipeline is a strategic priority for Mongolia, with the project expected to address the city's air pollution and energy sustainability challenges.
  • Mongolia remains a landlocked country, and access to the ports of Russia's Far East remains vital for its trade and energy transit routes.

Sources:

  • "10th Eastern Economic Forum: A Platform for Cooperation" - TASS (no date provided)
  • "Russia, China, Mongolia ink deal on gas pipeline" - Reuters (no date provided)
  • "Professor Ulambayar Denzenlkham" - University of Humanities of Mongolia (no date provided)
  • "10th Eastern Economic Forum" - Kremlin.ru (no date provided)