Putin Unveils Details of Landmark Russia–China Gas Deal
The Power of Siberia 2 pipeline, set to become the world’s largest gas project, will deliver over 100 bcm annually to China under a market-based pricing agreement.
Russia, PUREWILAYAH.COM - Russian President Vladimir Putin has confirmed the finalization of a landmark gas deal between Russia and China, centered on the massive Power of Siberia 2 pipeline.
Speaking to journalists in Beijing on Wednesday, Putin said pricing for the gas would be determined by an objective market-based formula, free from political influence.
“This is not charity – we’re talking about mutually beneficial agreements based on market principles,” Putin emphasized. He added that the agreement, reportedly the largest gas project on Earth, is the product of years of negotiations dating back to 2006.
The deal was announced on Tuesday by Gazprom CEO Aleksey Miller following a meeting in Beijing attended by Putin, Chinese President Xi Jinping, and Mongolian President Ukhnaagiin Khurelsukh.
Boosting Russian Gas Exports to China
Once completed, the 50 bcm per year pipeline will run from western Siberia through Mongolia to northern China, with the Mongolian section known as the Soyuz Vostok. Gas supplies will also be made available to Mongolian buyers.
Combined with existing pipelines and upcoming expansions, the project will boost Russian gas deliveries to China to over 100 billion cubic meters annually, making Beijing Russia’s largest energy customer.
Putin highlighted that China will purchase Russian gas at market rates — in contrast to the European Union, which has faced higher costs after cutting reliance on Russian energy.
A 30-Year Strategic Energy Partnership
The Power of Siberia 2 pipeline is expected to operate for at least three decades, reinforcing long-term energy cooperation between Moscow and Beijing.
According to Putin, the project is a direct response to China’s growing energy needs and Russia’s ability to meet them.
“Everyone is satisfied, everyone is pleased with the outcome,” he said, describing the deal as a mutually beneficial step that will enhance energy security and economic ties between the two nations. (PW)
Source: RT