Key Takeaways:

• Russia and China support the Power of Siberia 2 pipeline project
• No final agreement has been made on gas pricing yet
• The project can supply up to 50 billion cubic meters of gas yearly
• It strengthens ties between Russia and China amid Western pressure
• The pipeline adds more energy options for China

Power of Siberia 2 Pipeline: What’s the Big Deal?

The Power of Siberia 2 pipeline could be a huge shift in global energy trade. This major project aims to bring natural gas from Russia’s Arctic Yamal region to China, via Mongolia. If completed, it could carry up to 50 billion cubic meters (bcm) of gas every year.

That’s no small move. It means China would get more energy from Russia without needing to rely on sea routes blocked by Western nations. But even though both countries agree on the route and size, they still haven’t shaken hands on one big issue—price.

So, what’s really going on? Let’s break it down.

A Giant Pipeline With Bigger Goals

Russia’s state-owned energy company, Gazprom, announced the progress of the Power of Siberia 2 pipeline. While leaders from both countries support the plans, Gazprom highlighted that there’s still no deal on pricing.

This isn’t just a question of money though—it’s all about power, energy, and politics. China, the world’s largest energy consumer, wants energy security. Russia, meanwhile, wants to sell more gas as Europe, its former biggest customer, cuts ties.

By teaming up on the Power of Siberia 2 pipeline, both countries hit their goals. China gets stable gas supplies to fuel its growing factories and cities. Russia finds a new customer as its relationship with the West sours.

Why Energy Matters More Than Ever

In today’s world, energy doesn’t just power homes—it powers politics. Europe used to buy a lot of Russian gas, but that changed after political tensions and the Ukraine war. Western countries hit Russia with sanctions, trying to pressure Moscow into backing down.

But instead of giving in, Russia turned east—to China.

At the same time, China needs secure gas sources to keep its economy running strong. This is especially important as the country moves away from coal to cleaner energy sources like natural gas.

The Power of Siberia 2 pipeline gives China more control over where it gets its gas. By bringing it in through land via Mongolia, China avoids busy and risky sea routes. That’s a big plus, especially in times of global tension.

What’s Taking So Long to Finalize?

Here’s where things get interesting. While both sides agree the pipeline is a good idea, they’re still stuck on gas pricing. Gazprom noted that pricing remains the main area of discussion.

Russia wants to get solid value for its gas. China, being the buyer, wants the best deal possible. This price tug-of-war is common in giant energy deals like this. But it also shows how careful China is in managing its partnerships—even with a close ally like Russia.

China knows it has the upper hand here. With many energy options on the market, including liquefied natural gas (LNG) and renewables, it can afford to push hard for better prices.

What Makes Power of Siberia 2 Different?

The Power of Siberia 2 pipeline isn’t the first energy connection between the two giants. The original Power of Siberia pipeline started delivering gas to China in 2019. But that one carries only about 38 billion cubic meters each year.

Power of Siberia 2 will go even bigger—50 billion cubic meters. It will start from the Yamal region, which has some of Russia’s richest gas fields. It then travels through Mongolia before reaching China.

This route is not only smart but strategic. It avoids parts of Russia’s western border now affected by war and global scrutiny. It also offers a quicker option for gas delivery compared to complex LNG shipping routes.

Putting Geo-Politics in the Pipeline

It’s clear the Power of Siberia 2 pipeline is about more than just gas. It’s shaping geopolitics. As Western nations isolate Russia, China’s growing closeness with Moscow sends a strong message.

Just this month, President Xi Jinping welcomed deeper ties with Moscow—even as Western countries urged caution. He is keeping China firmly connected to Russia’s energy market, showing little interest in bowing to outside pressure.

And for Russia, this partnership is a lifeline. Cut off from many global markets, Moscow sees pipeline deals like this as an economic and political boost.

How the Pipeline Helps China Hedge Its Bets

One big advantage China gains from the Power of Siberia 2 pipeline is flexibility. Now China doesn’t have to rely so much on Middle Eastern or Southeast Asian energy routes. It’s like having multiple chargers for your phone—you want backups.

China also knows that energy security means economic stability. If there’s a global energy crisis—or if sea routes are blocked—pipelines like this one make sure China’s lights stay on.

The ability to use different sources and routes for natural gas helps the country keep energy costs under control. That’s important for the world’s second-largest economy.

Challenges Still Ahead for Power of Siberia 2

Of course, big projects like this don’t happen overnight. Even with support on both sides, there’s still a long road ahead.

Besides pricing, construction takes time. The route through Arctic terrain and Mongolia poses engineering challenges. Not to mention the potential pushback from environmental groups or local communities.

And let’s not forget global politics. Any changes in leadership, economic pressure, or sanctions could slow the project down. That’s why experts believe it still might take several years before gas starts flowing through the Power of Siberia 2 pipeline.

A Silent Energy Revolution in the Making?

Even if it seems like just another energy deal, the Power of Siberia 2 pipeline speaks volumes. It reflects how global alliances are shifting. It shows that energy is not only a commodity, but also a way to build influence.

China and Russia are re-writing the rules of energy trade, one pipeline at a time.

Time will tell if this project lives up to its bold promises. But if it does, it may change the way we look at global energy forever.

FAQs

What is the Power of Siberia 2 pipeline?

The Power of Siberia 2 pipeline is a planned gas pipeline that will carry natural gas from Russia to China through Mongolia. It aims to deliver up to 50 billion cubic meters of gas each year.

Why is the gas pricing not yet agreed?

Although both countries support the pipeline, they are still negotiating the price. Russia wants higher returns, while China is pushing for lower costs.

How does this pipeline help China?

It gives China a more stable and safer gas supply through land. This reduces China’s dependence on sea routes and boosts its energy security.

When will the Power of Siberia 2 be completed?

There is no confirmed completion date yet. The pipeline is still in planning, and final agreements, including pricing, must be settled first. The project could take several years to finish.