UPDATE 1-Kremlin says understanding reached on Power of Siberia 2 gas link to China, but no details yet

The Kremlin said on Wednesday that a general understanding with China on their joint ‌Power of Siberia 2 gas pipeline had been reached but key details and a timetable for the vast project still needed to be agreed.

The Kremlin said on Wednesday that a general understanding with China on their joint ‌Power of Siberia 2 gas pipeline had been reached but key details and a timetable for the vast project still needed to be agreed. Russia and China have been in talks for years over the pipeline, which would bring gas to China ‌via Mongolia from Russia's natural gas heartland in northern Siberia, as pricing and other issues remain elusive.

There is currently ‌one gas pipeline from Russia to China, the Power of Siberia, which carries more than 38 billion cubic metres of gas per year from eastern Siberia. Russia's President Vladimir Putin is in China for talks with President Xi Jinping.

There was no mention of any oil and gas deals ⁠among documents ​signed during Putin's visit and ⁠published by the Kremlin. AGREEMENT ON ROUTE, METHOD FOR PIPELINE CONSTRUCTION

"The president said during the talks that, overall, there is already a shared understanding of ⁠the main parameters for Power of Siberia 2," Kremlin spokesman Dmitry Peskov told Russian media. "There is agreement on the route and on ​how the project will be built. Some details still need to be finalized, but in general such an understanding ⁠is already in place," he said.

However, there was no timetable for implementation of the pipeline, Peskov said. The planned 2,600-km (1,616-mile) Power of Siberia 2 ⁠is expected ​to carry 50 billion cubic metres (bcm) of gas per year to China through Mongolia from the Arctic gas fields of Yamal.

A firm agreement—covering pricing and other key issues—remains elusive, leaving the project unable to proceed. During his visit ⁠to China in September, Putin said the price of gas on the system would be based on a market ⁠formula similar to the one for ⁠Russian shipments to Europe.

The project has taken on new importance for Russia since sanctions imposed after its invasion of Ukraine cut it off from most of its European customers.