How much transit revenue can Mongolia earn from the "Power of Siberia-2" pipeline?
How much income can Mongolia earn from the "Power of Siberia-2" gas pipeline that "lands in Mongolia"?
In reality, Mongolia has been dreaming of the substantial transit revenue from the "Power of Siberia-2" gas pipeline.
On September 11, 2020, the British media "BBC" reported as follows [see screenshot]:
"The Russian newspaper website reported on September 3 that the 'Power of Siberia-2' gas pipeline connecting Russia's west and east may open a new route for transporting natural gas through Mongolia to China, with an annual capacity of up to 50 billion cubic meters. It will directly deliver Russian natural gas to the densely populated central regions of China."
"Russia's Gazprom has recently launched the design survey work for the 'Power of Siberia-2' Russia-China gas pipeline project to pass through Mongolia."
"Mongolian media reported that the pipeline transportation fee for 1,000 cubic meters of natural gas per hundred kilometers is $2.5. Based on an annual gas transmission volume of 38 billion cubic meters, this pipeline project could bring Mongolia $1 billion in revenue."
"It is estimated that the design work for laying the gas pipeline in Mongolia may take 1-2 years, and construction will require 5 years."
If calculated at the designed capacity of 50 billion cubic meters, Mongolia could earn $1.25 billion in transit revenue annually. The lucrative income has drawn attention from Kazakhstan, with Astana hoping the 'Power of Siberia-2' would cross the Kazakh steppe. Although the Chinese ambassador to Russia mentioned that transiting Kazakhstan was unfeasible, Kazakhstan has not been ruled out, nor are the Mongolian grasslands and deserts necessarily required.
The Mongolian News Agency in Ulaanbaatar reported on April 14 that according to information from the government press office, Prime Minister R. Oyun-Erdene met with the U.S. Ambassador to Mongolia Richard Buangan on the 13th of this month.
Both sides exchanged opinions and information on the progress of consolidating and strengthening the partnership between Mongolia and the United States as the "strategic third neighbor," and discussed the future direction of bilateral relations and cooperation.
National interests come first, and the ball is now in the court of the country providing the transit route.
Original article: https://www.toutiao.com/article/1829814762828800/
Disclaimer: This article solely represents the author's personal views.
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