Pipeline Power Play: Russia and China's Energy Tango

China is considering increasing imports of Russian gas through the existing Power of Siberia 1 pipeline, as discussions for a new link via the Power of Siberia 2 project falter. This development emerges amid Russia's search for new energy markets after losing European clientele due to Western sanctions.

In light of Vladimir Putin and Xi Jinping's upcoming meeting in China, energy trade is a pressing topic. However, despite ongoing talks for over a decade, Russia and China have not reached an agreement on pricing and funding for the Power of Siberia 2 pipeline, which intended to reroute gas from West Siberia.

Russia's shift towards China for gas exports follows a significant decline in European exports. While Gazprom has proposed increasing the pipeline's capacity, key players, such as China National Petroleum Corporation and PipeChina, are exploring infrastructure expansions to accommodate potential gas flow increases.