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3h ago

Gazprom Announces Binding Pact to Build Power of Siberia 2 Pipeline to China

Key terms remain unsettled, leaving the plan short of a final investment decision.

Image
In this pool photograph distributed by the Russian state agency Sputnik, Russia's President Vladimir Putin, left, walks with China's President Xi Jinping during the Shanghai Cooperation Organization (SCO) summit in Tianjin on September 1, 2025.
Chinese and Russian flags fly at an airport before a ceremony to welcome Russian President Vladimir Putin, who arrives to attend the Shanghai Cooperation Organisation (SCO) summit in Tianjin, China August 31, 2025. Sputnik/Vladimir Smirnov/Pool via REUTERS/File Photo

Overview

  • Gazprom CEO Alexei Miller said a legally binding memorandum covers Power of Siberia 2 and the Soyuz Vostok route via Mongolia, designed to deliver about 50 billion cubic metres of gas a year for 30 years.
  • China has not confirmed pipeline specifics, with Xinhua noting more than 20 cooperation deals as the Kremlin cited 22 agreements including strategic cooperation between Gazprom and CNPC.
  • Supplies through the existing Power of Siberia pipeline are set to rise to 44 bcm a year from 38 bcm, with a separate Sakhalin link targeted to increase to 12 bcm from 10 bcm.
  • Miller said the gas price for the new route will be agreed separately and that talks now shift to financing and other commercial terms that have long delayed the project.
  • The line would carry West Siberian gas to northern China via Mongolia, signaling deeper ties and a potential outlet for Russia’s lost European sales, though Beijing’s commitment and construction roles remain unclear.