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24 Mar, 2023 13:17

Russia-China gas megadeal ‘at final stages’ – official

Moscow hopes to seal an agreement on the Power of Siberia 2 pipeline this year, deputy Prime Minister Aleksandr Novak says
Russia-China gas megadeal ‘at final stages’ – official

Talks between Moscow and Beijing on building the Power of Siberia 2 natural gas pipeline that will double existing transit capacity are at “the final stages,” TASS news agency reported on Thursday, citing a senior Russian official.

According to Deputy Prime Minister Aleksandr Novak, China and Russia expect the deal to be struck by the end of this year.

“Gazprom and China’s CNPC are finalizing their contractual obligations. A feasibility study and the project for the pipeline route through Mongolia are already underway. We hope, we are sure, that our companies will reach an agreement and sign the contract by the end of the year,” TASS quoted Novak as saying.

The Power of Siberia 2 pipeline is expected to supply 50 billion cubic meters of Russian gas to China annually from 2030 onwards. Coupled with deliveries along the existing Power of Siberia pipeline, which became operational in 2019, it could bring China-bound gas deliveries to 100 billion cubic meters per year.

The Power of Siberia 2 energy project was among the issues discussed during Chinese President Xi Jinping’s official visit to Moscow this week.

Russian President Vladimir Putin stated during his meeting with the Chinese leader on Tuesday that almost all parameters of the agreement on the new gas pipeline had been agreed.

He stressed that energy cooperation between the two countries has been growing, with Russia becoming a strategic supplier of oil, gas, coal and electricity to China.

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