Gas Pipeline Projects and Developments Between Russia and China
Deputy Prime Minister of the Russian Federation Alexander Novak confirmed that an agreement in principle exists for the construction of the Power of Siberia – 2 gas pipeline. He shared this information with the newspaper Izvestia, underscoring that formal negotiations are advancing toward practical terms.
Novak noted that talks between Gazprom and the Chinese CNPC are approaching a final phase, with ongoing coordination on commercial conditions. The deputy prime minister highlighted that both sides are working to settle the project cost, the scale of fuel supply, and payment terms as part of the agreement framework.
In a separate interview, Chinese Ambassador to Russia Zhang Hanhui told RIA Novosti that Moscow and Beijing are actively exploring the possibility of implementing Power of Siberia – 2. He explained that a comprehensive, scientific, and systematic justification is required for moving forward. The ambassador emphasized that the collaboration in the gas sector reflects China’s strong consumer demand and a shared interest in establishing a long-term, sustainable model of cooperation with Russia.
Novak reiterated on December 17 that Moscow hopes to finalize a pact with Beijing on Power of Siberia 2 as soon as possible, signaling urgency in aligning strategic energy ties between the two nations.
On the same day, Gazprom reported sending a record amount of gas to China. The Russian energy giant currently fulfills a long-running contract to supply 38 billion cubic meters per year under a 30-year framework that began in December 2019. The decision to increase volumes is motivated by the growing needs of Chinese consumers and the desire to strengthen energy security and ties between the two economies. — citation: Gazprom press release.
Earlier developments indicated that Russia’s gas deliveries to China were on a trajectory to surpass the established targets for 2023, reflecting strong demand in the Chinese market and the strategic importance of gas supplies in the broader energy cooperation between the two countries. — citation: industry briefings and official statements.
As discussions continue, experts view Power of Siberia – 2 as a potential milestone in regional energy infrastructure, with implications for market dynamics in both Russia and China. Analysts point to the need for a clear, transparent framework that align pricing, volumes, and long-term commitments with energy security goals and economic rationales for both sides. The evolving negotiations are watched closely by energy buyers and policymakers in North America and beyond, given the global role of Russian gas in international markets. — citation: policy summaries and market analyses.