The Prague Post - Power of Siberia 2: The giant gas pipeline Russia wants to build to China

EUR -
AED 4.114065
AFN 72.259582
ALL 90.790621
AMD 404.158249
ANG 2.004979
AOA 1027.255243
ARS 1706.277137
AUD 1.605841
AWG 2.019222
AZN 1.908846
BAM 1.955598
BBD 2.254667
BDT 138.445698
BGN 1.95798
BHD 0.422456
BIF 3355.553362
BMD 1.120234
BND 1.430852
BOB 13.181638
BRL 5.562192
BSD 1.119484
BTN 106.219027
BWP 15.421407
BYN 3.28696
BYR 21956.591821
BZD 2.251367
CAD 1.568609
CDF 2594.46299
CHF 0.92428
CLF 0.028243
CLP 1105.065844
CNY 7.480981
CNH 7.472639
COP 3552.732992
CRC 510.847228
CUC 1.120234
CUP 26.866225
CVE 110.25361
CZK 24.330933
DJF 199.339408
DKK 7.473811
DOP 68.662907
DZD 150.487454
EGP 61.701626
ERN 16.803514
ETB 182.080891
FJD 2.506193
FKP 0.83772
GBP 0.83759
GEL 2.901844
GGP 0.83772
GHS 12.979659
GIP 0.83772
GMD 82.897735
GNF 9906.976581
GTQ 8.557116
GYD 234.45578
HKD 8.78527
HNL 30.053895
HRK 7.537165
HTG 146.714844
HUF 366.731529
IDR 20269.350965
ILS 3.478944
IMP 0.83772
INR 106.361208
IQD 1697.024692
IRR 2052689.282929
ISK 136.422562
JEP 0.83772
JMD 177.661647
JOD 0.79429
JPY 175.72038
KES 145.354984
KGS 97.962924
KHR 4573.527541
KMF 492.347215
KPW 1008.210806
KRW 1482.658115
KWD 0.348046
KYD 0.932904
KZT 508.267495
LAK 25190.397759
LBP 100245.344367
LKR 371.711601
LRD 190.860284
LSL 18.546684
LTL 3.307761
LVL 0.677619
LYD 7.169259
MAD 10.995664
MDL 20.205913
MGA 5062.477032
MKD 61.598637
MMK 2352.610992
MNT 4031.902629
MOP 9.043866
MRU 44.738378
MUR 52.830672
MVR 17.319246
MWK 1941.099479
MXN 20.912986
MYR 4.576498
MZN 71.587148
NAD 18.546684
NGN 1492.219693
NIO 41.195744
NOK 10.482469
NPR 169.950444
NZD 1.961367
OMR 0.429016
PAB 1.119384
PEN 3.844503
PGK 5.013482
PHP 71.267107
PKR 309.775499
PLN 4.40251
PYG 6474.331183
QAR 4.080578
RON 5.3545
RSD 117.487863
RUB 89.990404
RWF 1653.929144
SAR 4.204519
SBD 9.045421
SCR 15.663382
SDG 673.825035
SEK 11.125947
SGD 1.430432
SHP 0.837151
SLE 25.709792
SLL 23490.757589
SOS 639.733914
SRD 42.176265
STD 23186.587781
STN 24.497469
SVC 9.794988
SYP 14565.285711
SZL 18.546084
THB 37.830725
TJS 10.315634
TMT 3.932022
TND 3.342755
TOP 2.697255
TRY 55.679905
TTD 7.606214
TWD 36.503734
TZS 2963.693842
UAH 50.679165
UGX 4931.490563
USD 1.120234
UYU 44.895362
UZS 13396.616091
VES 985.569686
VND 28949.654292
VUV 132.885547
WST 3.100575
XAF 655.957
XAG 0.020782
XAU 0.000280356799
XCD 3.02749
XCG 2.017492
XDR 0.792064
XOF 655.957
XPF 119.331742
YER 264.491333
ZAR 18.566461
ZMK 10083.456786
ZMW 22.506675
ZWL 360.71498
SSP 6436.081715
MXV 2.360302
  • NGG

    -0.7800

    81.86

    -0.95%

  • BTI

    -0.9900

    59.48

    -1.66%

  • RELX

    -0.0800

    40.54

    -0.2%

  • GSK

    -0.4600

    50.75

    -0.91%

  • BCE

    -0.4100

    20.4

    -2.01%

  • CMSC

    0.0000

    19.6

    0%

  • RIO

    -0.7200

    83.42

    -0.86%

  • RBGPF

    2.6200

    72.77

    +3.6%

  • AZN

    -1.0800

    171.49

    -0.63%

  • BCC

    -0.5500

    77.74

    -0.71%

  • CMSD

    0.1800

    19.78

    +0.91%

  • BP

    1.2700

    51.32

    +2.47%

  • VOD

    -0.3800

    15.74

    -2.41%

  • RYCEF

    -1.7500

    15.26

    -11.47%

  • JRI

    0.0700

    10.75

    +0.65%

Power of Siberia 2: The giant gas pipeline Russia wants to build to China
Power of Siberia 2: The giant gas pipeline Russia wants to build to China / Photo: GREG BAKER - AFP

Power of Siberia 2: The giant gas pipeline Russia wants to build to China

Russia has been pushing for years to build a new pipeline to China to deliver billions of dollars' worth of natural gas to its close ally.

Text size:

But progress has been slow amid hesitation in Beijing.

As Russian President Vladimir Putin arrives for talks with his counterpart Xi Jinping, here is what AFP knows about the proposed pipeline:

- 50 billion cubic metres -

The 2,600-kilometre (1,600-mile) route would run from the Yamal peninsula in northern Siberia through Mongolia into China.

It would carry around 50 billion cubic metres of gas a year, equivalent to around 12 percent of China's estimated total gas consumption in 2025.

Crucially for Russia, the gas would be supplied from fields that previously served Europe, where exports of pipeline gas have plunged since Moscow launched its invasion of Ukraine in 2022.

That differs from the existing Power of Siberia pipeline, launched in 2019, which has the capacity to move around 38 billion cubic metres of gas annually from eastern Siberia to northeastern China.

"For Russia, it is a strategic lifeline after losing most of its European gas market," said Alexander Korolev, a political scientist at UNSW Sydney in Australia.

"For China, the pipeline is about energy security and leverage, and less about dependence. It diversifies supply away from maritime chokepoints," he said.

- Stalled progress -

First proposed by Putin in 2006 alongside what became the first Power of Siberia pipeline, Beijing has said little about a second pipeline, and construction has not started.

Russia's state-owned Gazprom said last year that it had signed a legally binding 30-year supply agreement with the China National Petroleum Corporation (CNPC) that would underpin the pipeline.

But details were scant, including on the critical issue of price.

In a statement at the time, China's foreign ministry said only that Xi and Putin had signed "over 20 bilateral cooperation documents" in fields including energy, aerospace, artificial intelligence and agriculture, without mentioning the Power of Siberia 2.

China's attitude to the project for years was "if it happens, great, if it doesn't, we'll manage", said Alexei Gromov, head of the Russia-based Institute for Energy and Finance.

- New momentum -

That may now have changed, as Russia hopes to seize on energy volatility triggered by the war in the Middle East and the closure of the Strait of Hormuz to kick-start the project.

"The current crisis could boost the chances of the Power of Siberia 2 pipeline being built," said Natasha Kuhrt, lecturer in international peace and security at King's College London.

"The first Power of Siberia pipeline took about 20 years or more to come into being, and the Chinese drive a hard bargain on price. On this second pipeline the story will be no different, the cards will all be in China's hands," she said.

Ahead of Putin's trip, Kremlin foreign policy aide Yuri Ushakov told reporters there would be "very detailed" discussions on the pipeline with Xi.

Analysts were divided as to whether a deal could be on the cards during this visit.

Gromov said he saw "quite high" chances of a full commercial deal being struck, while Korolev was more hesitant, expecting only "affirmation of political support, not final agreements".

- Deepening energy ties -

Analysts attribute part of China's hesitance to Beijing's desire to balance energy imports from different suppliers and not become too reliant on any one source.

But since the West sanctioned Russia over its Ukraine invasion and cut its imports of Russian energy, China has lapped up discount oil from a key ally.

In terms of natural gas, China imported $2.3 billion from Russia during the first three months of this year, up three-fold from the same period in 2022, according to Chinese customs data.

Russian energy sales are the "most stable" part of a political, military and economic relationship that has blossomed between the two countries in recent years, Korolev said.

If completed, the Power of Siberia 2 "would deepen that interdependence" while also signalling that Russia "is not isolated and can still execute major infrastructure projects", he added.

Q.Fiala--TPP