"China and Russia signed an agreement to build the Power of Siberia-2 pipeline on September 2, a key step forward for one of the world's most expensive gas projects. Russia's pipeline gas monopoly Gazprom announced the deal as President Vladimir Putin met with Chinese leader Xi Jinping in Beijing ahead of a high-profile military parade, saying that the two sides had signed a legally binding "memorandum of construction" on the long-awaited pipeline."
"Miller said that China and Russia have yet to agree on pricing details for the pipeline and how its costs will be shared, which have been stumbling blocks in the negotiations for years. "Talks will now focus on financing the pipeline's construction and the commercial terms of supply," Miller said in Beijing. He promised to "provide the commercial details" separately."
China and Russia formalized a memorandum to build the 50 bcm/year Power of Siberia-2 pipeline, linking Yamal Peninsula gas reserves to China via Mongolia. Gazprom announced the agreement during a Beijing meeting between Vladimir Putin and Xi Jinping, but commercial terms remain unsettled. Pricing, cost-sharing and financing are outstanding issues that have stalled negotiations for years. The project aims to offset some lost European markets for Russian gas and will influence global gas markets. Questions persist about Gazprom's ability to underwrite the complex infrastructure and how the pipeline will be financed and commercially structured.
Read at RadioFreeEurope/RadioLiberty
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