AsianFin -- Russia and China on Tuesday signed a legally binding agreement to construct the long-delayed Power of Siberia 2 gas pipeline, a move that underscores growing commercial cooperation and is likely to be interpreted as a defiant signal to Western nations.
Alexei Miller, chief executive of Russia’s state-owned energy giant Gazprom, confirmed to Russian news agencies that a memorandum of understanding had been finalized on the project following talks between President Vladimir Putin and Chinese President Xi Jinping in Beijing.
The pipeline is designed to transport gas from Russia’s West Siberian reserves to northern China via eastern Mongolia, with a planned annual supply capacity of 50 billion cubic meters, according to Miller. The agreement secures supplies for 30 years, although the exact pricing of the gas will be determined separately.
In addition to the Power of Siberia 2 deal, Russia and China signed a separate agreement to boost gas deliveries through the existing Power of Siberia pipeline, further cementing Beijing as a key long-term customer for Russian energy exports.
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