Russia releases new inform on China gas pipeline

2024-08-26 07:07:21

(MENAFN) Russian Foreign Ministry spokeswoman Maria Zakharova provided a new update on the status of the Power of Siberia 2 pipeline project, which is designed to transport natural gas from Russia to China. According to Zakharova, the pipeline remains in a high state of readiness, despite recent developments involving Mongolia’s role in the project.

The Power of Siberia 2 pipeline is a major infrastructure initiative intended to deliver up to 50 billion cubic meters (bcm) of Russian Natural gas annually from the Yamal Region in northern Russia to China via Mongolia. However, recent reports have indicated that Mongolia has excluded the pipeline from its national development plan for 2028. This development has raised concerns among analysts who suggest that it could complicate the pipeline’s future prospects.

The South China Morning Post reported that Mongolia’s exclusion of the project from its development plan might be attributed to several factors, including pricing disputes between Beijing and Moscow, geopolitical considerations, and fears of secondary sanctions from Western countries. These issues could potentially hinder the progress of the pipeline project, which is crucial for enhancing energy cooperation between Russia and China.

In response to these concerns, Zakharova stated that Mongolia's role in the project is under reconsideration. Initially, Mongolia had sought a limited role as a transit country. However, there is now discussion about potentially utilizing a portion of the pipeline’s gas to support Mongolia's own economic development, including its industry and infrastructure.

Zakharova assured that the project remains on track and will proceed once Russia and China finalize agreements on pricing and volume. She emphasized that negotiations are actively ongoing between Russia’s state-controlled energy giant, Gazprom, and China National Petroleum Corporation (CNPC). The successful resolution of these negotiations is expected to be key to advancing the Power of Siberia 2 pipeline and achieving its strategic objectives for both nations.

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