Russia’s President stated that the Power of Siberia 2 pipeline is set to increase gas supplies to more than 100 billion cubic meters annually.
Russian President Vladimir Putin announced that the Power of Siberia 2, a significant gas project recently finalized between Russia and China, will operate on market principles, with pricing determined by an objective formula rather than political considerations.
During a press conference in Beijing on Wednesday, Putin confirmed that both nations had reached a mutual understanding on the agreement, emphasizing, “This is not an act of charity; these are mutually advantageous agreements rooted in market dynamics.”
Gazprom CEO Aleksey Miller officially unveiled the agreement for what is being hailed as the world’s largest gas project on Tuesday, following a Beijing meeting attended by President Putin, Chinese President Xi Jinping, and Mongolian President Ukhnaagiin Khurelsukh.
Putin indicated that the project’s realization was due to the growing energy demands of China’s expanding economy, coupled with Russia’s capacity to fulfill these needs.
He underscored that China would acquire Russian energy at prevailing market prices, contrasting this with the European Union, which incurs higher expenses as it seeks to reduce its reliance on Russian oil and gas.
The Russian president noted that the deal represented the culmination of years of effort, remarking, “Everyone is content; everyone is pleased with this outcome.”
Discussions regarding the project, including its route and pricing structures, have been underway since 2006. Upon completion, the pipeline is projected to have an operational life of at least three decades.
This 50 billion cubic meter per year pipeline is designed to transport gas from western Siberia, traversing Mongolia, to northern China. The section within Mongolia is designated as Soyuz Vostok, and gas supplies will also be available for purchase by Mongolian customers.
Putin stated that the new Power of Siberia 2 route, combined with existing and expanding pipelines, is expected to raise Russian gas deliveries to China to surpass 100 billion cubic meters annually.