Russian energy company Gazprom PJSC has signed a legally binding agreement to build the Power of Siberia 2 gas pipeline, which will run through Mongolia to China, according to Interfax, quoting the company’s CEO, Alexei Miller, from Beijing.
In statements to Russian news agencies from Beijing, Miller said Gazprom could transport up to 50 billion cubic meters per year through Power of Siberia 2 for 30 years. He also said the price of the fuel would be lower than what Gazprom currently charges its customers in Europe, according to reports.
Beijing has yet to confirm the details of Miller’s statement. China’s state news agency Xinhua, reporting on the bilateral meetings, did not specifically mention the pipeline, though it said the two countries had signed more than 20 cooperation agreements, including in the energy sector.
Currently, Russia supplies China through the existing Power of Siberia pipeline, with a design capacity of 38 billion cubic meters per year. From 2027, the so-called Far Eastern route is expected to increase annual Russian flows to China by an additional 10 billion cubic meters.
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