Russia, China Agree On Second Power Of Siberia Gas Pipeline

Posted by: lukwago J in world news March 22, 2023

Following Tuesday’s meeting with his Chinese counterpart president Xi Jinping, president Vladimir Putin reached an agreement on the power of Siberia 2 gas pipeline which would connect Siberia to northwest china.

Putin held talks with Xi who is on state visit to Russia and highlighted that the economic cooperation between the two nations was a “priority.”

President Putin added that china had become a leader of Russian oil while Russia was ready to increase uninterrupted oil supplies for the needs of Chinese economy.

Gas from power of Siberia 2 will be transported to China via Mongolia following last year’s meeting in September where the the two leaders met and discussed this infrastructural project.

It’s paramount to remember that China already receives gas from Russia’s Gasprom through the first power of Siberia pipeline as part of a 30 year ,$400 billion agreement which projected started way back in 2019.

The first pipeline will continue to increase in its supply volume before achieving its maximum capacity of 38 bcm by 2025.

Analysts say China won’t require more gas till 2030

Consequently the second pipeline would now transport gas to China the world’s largest consumer from the vast Yamal peninsula deposits in west Siberia.

This project has been under negotiations for years but it’s more urgent since Moscow wants Beijing to take the place of Europe as its main gas consumer.

According to some industrial analysts, they say China won’t require more gas till 2030. This comes at a time when many Russian business and Oligarchs have been sanctioned by western nations .

These western sanctions are designed to reduce Russia’s capacity to fund the conflict in Ukraine and give a blow to its economy.

In contrast, Putin in a recent statement said that Russia’s economy is standing strong despite western efforts to bring it to its knees.

Russia is now attempting to strengthen its economic partnership with Allie’s right now particularly China.

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