Russia and China Seal Deal for Power of Siberia 2 Pipeline

Russia and China have settled on the route and supply metrics for the 'Power of Siberia 2' pipeline, which will channel 50 billion cubic meters of gas annually through Mongolia. Pricing and financing are yet to be determined, with final arrangements expected by 2026.

In a significant development, Russia and China have finalized the path and supply parameters for the much-anticipated Power of Siberia 2 gas pipeline, according to a RIA news agency report citing Russian Energy Minister Sergei Tsivilev.

The agreement was cemented with a binding memorandum during President Vladimir Putin's visit to China, acknowledging the pipeline's intended route through Mongolia, aimed at supplying around 50 billion cubic meters of gas yearly. Despite the progress, key details, such as pricing, remain unresolved. Minister Tsivilev noted that funding strategies should be complete by 2026.

The announcement also comes as the existing Power of Siberia 1 pipeline nears its maximum design capacity of 38 billion cubic meters. Both countries have reached a consensus to boost this to 44 billion cubic meters, with design enhancements currently in process.