Overview

• Gazprom and CNPC signed a memorandum for Power of Siberia 2 and the Soyuz Vostok transit line that was showcased by Xi Jinping and Vladimir Putin at the SCO summit.
• The project is widely reported at about 50 billion cubic metres per year into northern China, though some outlets cite higher and disputed figures.
• Analysts warn the pipeline could displace around one-third of China’s LNG imports and deliver a structural shock to the seaborne gas market.
• Key commercial terms remain unresolved, including pricing, financing and the final route, and there has been no final investment decision.
• The initiative underscores Russia’s pivot from Europe to Asia after 2022 sanctions and offers China a cheaper, more secure overland supply than LNG cargoes.