Full Breakdown
Power of Siberia 2 Talks Stall Over Gas-Price Gap
9/10/2026, 2:52:14 AM
Core Event
Negotiations between China and Russia on the Power of Siberia 2 natural-gas pipeline have stalled, according to two sources with direct knowledge of the talks. The impasse stems from a disagreement over the price at which Russia would sell gas to China.
Background & Context
The Power of Siberia 2 project is intended to expand the existing energy corridor that began with the Power of Siberia 1 pipeline, which currently supplies Russian gas to China at an average price of about US $258 per thousand cubic metres. Russia’s state gas exporter Gazprom seeks to base the new contract on the price of the first pipeline—roughly US $250-260 per thousand cubic metres. By contrast, the Chinese side is pushing for a price comparable to Russia’s heavily subsidised residential rate (around US $50 per thousand cubic metres) or at least the domestic industrial rate of US $120-130 per thousand cubic metres.
Data & Statistics
- Current Power of Siberia 1 price: ~US $258/kcm³ (average import price for China).
- Russia’s pre-war European gas price: >US $420/kcm³.
- China’s target price range: US $50–130/kcm³, depending on the rate referenced.
- Russia’s desired reference price: US $250-260/kcm³, matching the existing pipeline’s terms.
Official Statements & Responses
A source familiar with the negotiations indicated that Gazprom and China National Petroleum Corporation (CNPC) are simultaneously preparing to increase gas supplies via the Far-East route, suggesting parallel efforts to diversify delivery channels while the Power of Siberia 2 price talks remain unresolved. The same source noted that similar expansion activities are underway for the original pipeline, reflecting both parties’ interest in boosting physical supply volumes despite the pricing deadlock.
Why It Matters
The price dispute could delay the completion of Power of Siberia 2, a project projected to deepen energy interdependence between the two countries and reduce Russia’s reliance on European markets. For China, securing a lower-priced gas supply is crucial for meeting growing domestic demand and supporting industrial growth. For Russia, aligning the new contract with higher price benchmarks would help sustain revenue from its gas exports amid Western sanctions and reduced European sales. The stalemate therefore has strategic implications for both nations’ energy security and broader geopolitical positioning.
