Russia and China edge towards constructing a new gas pipeline

During a recent visit to China, Russian President Vladimir Putin signed a legally binding agreement with the Chinese state-owned company China National Petroleum Corporation (CNPC) for the construction of the Power of Siberia 2 gas pipeline. This significant development in the energy cooperation between Russia and China marks a major strategic energy partnership between the two nations.

The Power of Siberia 2 pipeline is a gas pipeline project that will transit Mongolia, connecting Russia and China. The pipeline is expected to supply 50 billion cubic meters of gas annually, according to previous reports. This project is the latest in a series of moves by the allies to strengthen their relationship.

The memorandum to build Power of Siberia 2 was among more than two dozen agreements signed between Moscow and Beijing during Putin's visit. These agreements are intended to further strengthen their strategic partnership.

The contract partner of CNPC for the construction of the Power of Siberia 2 pipeline project is the Russian state gas company Gazprom. Gazprom and CNPC have also agreed to raise shipments by 15 percent in the existing Power of Siberia pipeline.

The Power of Siberia 2 pipeline is not yet definitive, meaning its final details have not been decided. Many details, such as pricing, remain unclear. However, the increased shipments and the construction of Power of Siberia 2 provide a significant boost to Putin's economy, especially given the ongoing military spending related to the war in Ukraine, which has weighed down the economy.

It is worth noting that China and India have replaced Europe as the biggest buyers of Russian oil and gas. The Power of Siberia 2 pipeline is a move by Russia and China to bolster their ties, further solidifying their position as key energy partners.

The agreement for the Power of Siberia 2 pipeline is a step forward in long negotiations, but it is just one of many steps in the ongoing relationship between Russia and China. The memorandum of understanding for the pipeline is a symbol of the growing strategic partnership between the two nations.

In conclusion, the Power of Siberia 2 gas pipeline project is a significant development in the energy cooperation between Russia and China. The agreement signed during Putin's visit to China marks a major milestone in their strategic partnership and underscores the growing importance of their relationship in the global energy market.