Prospects for the construction of the Siberian Power-2 gas pipeline, which will supply Russian gas to China via Mongolia, remain illusory due to the long-standing disagreements between Moscow and Beijing over raw material prices. This is evidenced by the absence of this project in Mongolia’s long-term development plans until 2028, the Chinese newspaper writes. South China Morning Post (SCMP).
Citing former Mongolian Security Council member MB Bayarlkhagva, the newspaper reported that the country did not actually expect progress in the Siberian Forces-2 project in the coming years, so it was not included in the program documentation.
The main obstacle remains the price issue. According to the publication, China expects to receive gas from the new pipeline at $60 per thousand cubic meters – the domestic price of fuel in Russia. But Gazprom rejects these conditions.
Firstly, domestic pricing in the Russian Federation is subsidized by the state. Secondly, according to the publication, Chinese companies now buy gas through the already operating Siberian Power-1 gas pipeline at a much higher price (about $260 per thousand cubic meters).
The newspaper concluded that, given the principled position of the PRC on the lowest possible prices for energy resources, no real progress can be expected in the launch of the “Power of Siberia-2” in the coming years.
Before this, it was known that the European Union could do it. To present An ultimatum to Kiev to extend the transit of Russian gas as recent attacks on the Kursk region threaten fuel supplies to Europe. The imminent expiration of the transit agreement and the LNG shortage are causing serious concerns in the EU.
Previously, an oil refinery in Russia reached record the numbers.
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Source: Gazeta
Ben Stock is a business analyst and writer for “Social Bites”. He offers insightful articles on the latest business news and developments, providing readers with a comprehensive understanding of the business world.