Deputy Premier declares Putin, Xi making progress on main gas pipeline

(MENAFN) Russian President Vladimir Putin and Chinese President Xi Jinping have agreed to fast-track the development of the Power of Siberia 2 gas pipeline, Deputy Prime Minister Aleksandr Novak announced following their meeting in Moscow. The discussions took place during Xi’s visit to attend Victory Day events commemorating the 80th anniversary of the Soviet Union’s defeat of Nazi Germany.

The Power of Siberia 2 pipeline is projected to deliver up to 50 billion cubic meters of natural gas annually from northern Russia to China through Mongolia. Although the project had faced delays due to pricing and route negotiations, both leaders have now instructed their teams to speed up its implementation, Novak said. He noted that a feasibility study and other preparatory work have already been completed.

This project is part of Moscow’s strategy to diversify its energy exports amid declining demand from Europe and ongoing Western sanctions. For China, it represents a secure energy source to meet growing consumption.

Currently, Russia supplies gas to China via the Power of Siberia pipeline, part of a $400 billion, 30-year deal between Gazprom and China’s CNPC, signed in 2014. That pipeline became fully operational in December 2024, cementing Russia’s position as China’s top gas supplier.

Despite Western restrictions, economic ties between the two countries have strengthened, with trade hitting a record $245 billion in 2024. Gazprom expects further growth in gas exports, driven by increasing demand. Novak also noted that Russia is building a separate pipeline to China through Kazakhstan, and once all planned routes are active, annual Russian gas exports to China could approach 100 billion cubic meters.

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