Russia and China have agreed on the route and supply volumes for the planned Power of Siberia 2 gas pipeline, Russian state-run RIA news agency reported on Thursday, citing Energy Minister Sergei Tsivilev.
According to the signed memorandum, the pipeline will run via Mongolia and is expected to deliver around 50 billion cubic metres of gas annually.
Russia and China gave their blessing to the vast pipeline project with a binding memorandum signed during Putin’s visit to China, but little is known about the key details of the pipeline and Gazprom said that pricing was yet to be agreed.
“Now we need to work out the financing scheme,” Tsivilev said. “We’ve been given permission, we have freedom of action, so we’ll move quickly.” He added that financing arrangements are likely to be finalised in 2026.
Tsivilev also said the existing Power of Siberia 1 pipeline has reached its design capacity of 38 billion cubic metres, and Moscow and Beijing have agreed to increase it to 44 billion cubic metres.
“Design work to increase capacity is currently underway. Once this design work has been completed, we will announce specific dates,” Tsivilev said.
(Reporting by Olesya Astakhova Writing by Maxim Rodionov Editing by Mark Trevelyan)