Russia Finalizing Power of Siberia-2 Gas Pipeline Route to China, Novak Says
(Reuters) — Russia is finalizing the route of the China-bound Power of Siberia-2 gas pipeline, which is intended to traverse Mongolia, Deputy Prime Minister Alexander Novak wrote in energy ministry's in-house magazine, published on Wednesday.
Russia is trying to boost trade with Asia as economic ties with the West shrivel over Moscow's actions in Ukraine.
It wants to increase pipeline gas supplies to China by 50 billion cubic meters (Bcm) per year via Power of Siberia-2, while the existing Power of Siberia pipeline is due to provide 38 Bcm a year by 2025.
The proposed pipeline would bring gas from the huge Yamal peninsula fields in western Siberia to China, the world's top energy consumer and a growing gas consumer.
"The decision for the Power of Siberia-2 gas pipeline's route is at the final stage," Novak said.
He said it was "assumed" that the pipeline will pass near the eastern Siberian cities of Achinsk, Krasnoyarsk, Kansk, Sayansk, Angarsk and Irkutsk, then through the Buryatia region south of Lake Baikal, reaching the Mongolian border near the settlement of Naushki.
Kremlin-controlled gas giant Gazprom began a feasibility study on the project in 2020, and wants it to start delivering gas by 2030.
China and Russia have yet to agree on the terms of gas deliveries via the route, including pricing. Negotiations are complex, not least because China is not expected to need more gas until after 2030, industry experts said.
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