Financial Times: Construction of a gas pipeline that Russia intends to extend to China has been delayed
The Financial Times quoted Mongolian Prime Minister Luvsan Namsray Uyun-Erden as saying that the construction of the new pipeline (Power of Siberia-2), which Russia intends to extend to China to transport gas, may be delayed after it was expected to begin work on it this year.
Russia is in talks to extend a new pipeline to transport 50 billion cubic meters of gas annually from northern Russia to China via Mongolia, roughly equivalent to the capacity of the Nord Stream 1 pipeline, which passes under the Baltic Sea and is not currently operating after being damaged in 2022.
Uyun-Erden told the Financial Times that China and Russia haven’t yet agreed on key details of the giant project, adding that the unprecedented global gas prices over the past two years have complicated the talks.
Russian company Gazprom, which will operate the new line, said it aims to start delivering gas through the line by 2030; however, the agreement on key points including pricing remains elusive.
“The two sides still need more time to conduct detailed research and economic studies,” Uyun-Erden told the Financial Times.
“The Chinese and Russian sides are still making calculations and estimates and working to determine the economic benefits”.
Russia is ramping up its supplies to China to compensate for the loss of most of its gas sales to Europe since the invasion of Ukraine about two years ago.
This prompted Western countries to impose sanctions on Moscow and reduce its dependence on Russian energy.
According to the Russian Deputy Prime Minister Victoria Abramchenko who told the Russian TASS news agency last year that construction of the section of the Russian gas pipeline to China that passes through Mongolia could begin in the first quarter or first half of 2024.
