The planned 2,600-kilometre Power of Siberia 2 gas pipeline, intended to transport 50 billion cubic metres (bcm) of gas annually from Russia's Arctic Yamal fields to China via Mongolia, has encountered delays as key details and a timeline remain unresolved, despite a general understanding reached during Vladimir Putin's summit with Xi Jinping in Beijing.
Strategic Importance for Russia
For Russia, the pipeline has gained renewed strategic importance following Western sanctions imposed after its invasion of Ukraine, which severely curtailed its access to European energy markets. The project is seen as a crucial component in diversifying Russia's gas exports eastward, with President Putin hoping it will help rescue a stalling economy.
China's Cautious Approach
China, the world's largest importer of oil and gas, has offered limited public commentary on the pipeline. When Gazprom announced a legally binding 30-year supply memorandum in September 2025, Beijing did not issue a corresponding statement. The head of the research unit at China National Petroleum Corp noted that large-scale gas projects typically require at least eight to ten years for construction.
Pricing Disagreements
The project has faced delays due to disagreements over pricing. Putin stated in September that gas prices would be based on a market formula, similar to those for Russian shipments to Europe, but no specific figures have been agreed upon. Gazprom initiated a feasibility study in 2020, and the memorandum was signed in September 2025, but construction has not yet begun.
Existing Pipeline Infrastructure
China already imports natural gas via five existing pipelines from Central Asia, Russia, and Myanmar. The Power of Siberia 1 delivered 38 bcm of gas last year, with plans to increase capacity to 44 bcm. In the south, the Myanmar-China Gas Pipeline, operational since 2013, carries up to 12 bcm annually. Additionally, Russia and China are jointly constructing another pipeline with a 10 bcm capacity from Sakhalin Island.
China's natural gas imports via pipelines reached 59.4 million tons in 2025, accounting for about 19 per cent of domestic consumption. The country's 15th five-year plan, released in March, indicated a commitment to advancing early-stage work on Power of Siberia 2, but no firm construction schedule has been announced.
