Overview

• Gazprom and CNPC signed a memorandum of understanding for Power of Siberia 2 and the Soyuz Vostok transit line through Mongolia, presented by Russian and Chinese leaders at the SCO summit.
• The planned pipeline is widely described at roughly 50 billion cubic metres per year into northern China, though some outlets report larger figures that have not been confirmed.
• Pricing, financing, firm capacity and the final route remain unresolved, leaving the construction schedule and start-up timing uncertain.
• Analysts warn the project could displace about one-third of China’s LNG imports and trigger a structural shock to global seaborne gas trade.
• U.S. LNG exporters and other suppliers could see softer Asian demand growth as China positions for cheaper, overland pipeline gas in the coming decade.