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Russia Expands Gas Supply to China with New Pipeline

9/2/2025

31 5 Full Breakdown

Summary

Story summary

Russia plans to boost gas supplies via the Power of Siberia pipeline while developing the Power of Siberia 2 pipeline.
The new pipeline will transport 50 billion cubic meters of gas annually from Yamal to China through Mongolia.
Pricing negotiations are still in progress, with Gazprom yet to finalize costs for the project.
This development highlights Russia's strategic shift towards China following the loss of European gas markets.

History

Historical Context

Since Russia's annexation of Crimea in 2014, Western sanctions have severely impacted its energy exports, causing Gazprom's European gas sales to drop by 30%. In response, Russia is pivoting towards Asia, exemplified by the proposed Power of Siberia 2 pipeline, which aims to transport 50 billion cubic meters of gas annually to China, highlighting shifting geopolitical dynamics in global energy markets.

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Story summary

Russia plans to boost gas supplies via the Power of Siberia pipeline while developing the Power of Siberia 2 pipeline.
The new pipeline will transport 50 billion cubic meters of gas annually from Yamal to China through Mongolia.
Pricing negotiations are still in progress, with Gazprom yet to finalize costs for the project.
This development highlights Russia's strategic shift towards China following the loss of European gas markets.

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