Bloomberg: China signed an agreement with Russia on the construction of the "Power of Siberia-2" gas pipeline
This is reported by Bloomberg.
According to CEO Alexei Miller, the gas producer can supply up to 50 billion cubic meters per year through "Power of Siberia 2" for 30 years. Miller said that the fuel price will be lower than the rate currently charged by "Gazprom" to clients in Europe.
As Bloomberg reports, apart from unresolved negotiations on the price, it is unclear whether China will be able to purchase flexible volumes from the pipeline or if it will have to buy its full capacity. Additionally, no construction or start-up timelines have been announced. Financial details are also not disclosed at this time.
"The construction project of 'Power of Siberia 2' and the 'Union-East' gas pipeline, a transit connection through Mongolia, as well as capacities for gas transportation in China, will become the largest, most extensive, and most capital-intensive gas project in the world," – Russian news agencies quote Miller.
It is emphasized that "Gazprom" has also agreed to increase the flow to China via the existing 'Power of Siberia' route by another 6 billion cubic meters per year. Its current annual capacity is 38 billion cubic meters.