Tuesday, September 2, 2025

IMPORTANT RUSSIA-CHINA ENERGY DEAL FOR NEW PIPELINE

 Filenews 2 September 2025



Russia's Gazprom has signed a legally binding agreement to build the Power of Siberia 2 pipeline, which will transport gas to China via Mongolia, while agreeing to expand deliveries via two other routes.

According to Russian media and statements by the company's CEO Alexei Miller, Gazprom will export up to 50 billion cubic meters of gas annually for a period of 30 years.

Lower prices compared to Europe

The supply price will be lower than the charges that Gazprom applies to its European customers, according to the Russian Tass agency. Asked about the length of the deal, Miller confirmed: "30 years."

Strategic shift to Asia

Gazprom underlined that Russia and China continue to work on new gas supply possibilities. With this agreement, Moscow is attempting to strengthen its position as a key supplier in the Asian market and partially compensate for lower deliveries in Europe, following the invasion of Ukraine.

Increase existing flows

At the same time, the company decided to increase flows through the existing Power of Siberia pipeline by 6 billion cubic meters per year, raising the total annual capacity from 38 billion cubic meters to higher levels.

ANA-MPA