Power of Siberia 2: Russia's Strategic Energy Shift to China
Russia and China are set to strengthen their energy partnership with the Power of Siberia 2 gas pipeline project, promising China cheaper gas than Europe and reducing reliance on U.S. LNG. Details of the agreement remain vague as negotiations continue, but mutual benefits are emphasized by both countries.
Russian President Vladimir Putin announced on Wednesday that the upcoming Power of Siberia 2 gas pipeline sets a strategic advantage for China, offering the nation cheaper gas compared to Europe. A binding memorandum signed during Putin's visit to China marks a significant step, though specific details, including pricing, remain undisclosed.
With an expected capacity of 50 billion cubic metres per year, the pipeline will traverse Mongolia, supplying China with additional gas from Russia's Arctic Yamal fields. This move diversifies China's energy sources, reducing its potential dependency on U.S. LNG in the future.
The project strengthens the 'no limits' partnership between Russia and China, amid Western sanctions on Russia over the Ukraine conflict, contributing to over 100 billion cubic metres of Russian gas supplied to China annually. Both nations view this agreement as beneficial, affirming their commitments to economically advantageous cooperation.
(With inputs from agencies.)
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