Russia China Launch Power of Siberia 2

Russia and China Finalize Power of Siberia 2 Pipeline Route

• Russia’s Gazprom and China have agreed on the route for the Power of Siberia 2 pipeline, aiming to transport 50 bcm of gas annually from Siberia to northern China.
• The pipeline will span approximately 2,600 kilometers, passing through Mongolia, with operations expected to begin around 2030.
• If combined with the existing Power of Siberia 1, Russia’s gas capacity to China could reach nearly 100 bcm per year by the 2030s.
• The agreement reflects a shift towards yuan-denominated energy trade between Russia and China, bypassing the US dollar system.

This agreement between Russia and China on the Power of Siberia 2 pipeline marks a significant step in de-dollarizing bilateral energy trade. The project could fulfill over 20% of China’s gas demand by the next decade.