Russia’s Gazprom and China’s CNPC have signed a “legally binding memorandum” to construct a new gas pipeline, Gazprom CEO Alexei Miller announced on Tuesday.
The proposed Power of Siberia 2 pipeline will transport natural gas from Russia’s Yamal fields to China. Russian state media reports that gas supplies are expected to run for 30 years, with an annual volume of 50 billion cubic meters.
In addition to the new project, both sides agreed to increase gas deliveries through existing routes. Exports via the Power of Siberia pipeline will rise from 38 to 44 billion cubic meters per year, while deliveries through the Eastern Route will grow from 10 to 12 billion cubic meters annually, according to RBC.
Miller made the announcement following trilateral talks in Beijing involving delegations from Russia, China, and Mongolia.
Russian President Vladimir Putin and Chinese leader Xi Jinping have discussed the Power of Siberia 2 for years. The project could make Russia the largest gas supplier to the Chinese market.
