Russian President Vladimir Putin and Chinese leader Xi Jinping have agreed to complete the Power-of-Siberia 2 pipeline project, which will deliver gas to China via Mongolia. The leaders met in Moscow for two days of talks, during which they discussed the major new infrastructure project.
According to Putin, Russia, China, and Mongolia have completed “all agreements” on finishing the pipeline to ship Russian gas to China. Putin also stated that Russia will deliver at least 98 billion cubic meters (bcm) of gas to China by 2030. However, a subsequent Russian statement said that pipeline details still need to be resolved.
The Power-of-Siberia 2 pipeline project is an extension of the Power-of-Siberia 1 pipeline, which became operational in 2019. The Power-of-Siberia 1 pipeline delivers gas from the Chayandinskoye field in eastern Siberia to China. The Power-of-Siberia 2 pipeline will extend from the Kovykta gas field in Siberia to China, passing through Mongolia.
The new pipeline will help meet China’s growing demand for natural gas, which has been driven by the country’s efforts to reduce its reliance on coal and improve air quality. Russia is well positioned to meet this demand, as it holds some of the world’s largest natural gas reserves.
The completion of the Power-of-Siberia 2 pipeline will also strengthen the economic ties between Russia and China, which have been growing closer in recent years. The two countries have been increasing their trade and investment, and have also been cooperating on a number of international issues, including the situation in Syria and North Korea’s nuclear program.
However, the pipeline project is not without its challenges. The route of the pipeline will pass through remote and challenging terrain, and will require significant investment in infrastructure. There are also concerns about the environmental impact of the pipeline, particularly in Mongolia, where the pipeline will pass through sensitive ecosystems.
Despite these challenges, Putin and Xi have expressed their commitment to completing the project. In a joint statement, the two leaders emphasized the importance of the project for the development of the two countries’ energy industries and for promoting regional stability and prosperity.
In conclusion, the agreement to complete the Power-of-Siberia 2 pipeline marks an important milestone in the economic relationship between Russia and China. The pipeline will help meet China’s growing demand for natural gas and will strengthen the ties between the two countries. However, the project also presents significant challenges, and it remains to be seen how these will be overcome.