"On paper, the project-known as the Power of Siberia 2-would give Russia a way to replace some of the revenue from its decades of selling natural gas to Europe that was lost over its invasion of Ukraine. The pipeline would carry gas from reserves in western Siberia through Mongolia to China. And what Gazprom CEO Alexei Miller called a "legally binding" memorandum to build the pipeline with the China National Petroleum Co."
"The pipeline would run 6,700 kilometers (4,163 miles) from gas fields in the Yamal Peninsula in western Siberia, past Lake Baikal in eastern Siberia, and then across Mongolia into China. For more than 50 years, Russia earned fat profits sending Yamal gas to Europe through pipelines leading west. But Russia cut off most pipeline gas to Europe over the war in Ukraine, and the European Union wants to end the remaining trickle of supplies by 2027."
"Power of Siberia 2 would carry 50 billion cubic meters a year to China, compared with the up to 180 billion cubic meters a year that went to Europe-meaning the new pipeline could only make up part of the lost business. It would supplement a previous, smaller Power of Siberia line that carries gas from different fields in eastern Siberia with a capacity of 38 billion cubic meters per year."
Power of Siberia 2 would transport gas from the Yamal Peninsula in western Siberia through Mongolia into China along a roughly 6,700-kilometer route past Lake Baikal. Gazprom and China National Petroleum Co. signed a memorandum described as legally binding, while key commercial and pricing terms remain unresolved. The pipeline's projected capacity is 50 billion cubic meters per year, supplementing an existing 38-billion-cubic-meter line. Europe previously received up to 180 billion cubic meters annually from Yamal fields. The new route can therefore replace only part of the lost European market and has significant geopolitical implications.
Read at Fortune Asia
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