Mongolia Focuses on the "Power of Siberia-2" Gas Pipeline
Bloomberg News, New York, May 8 - It was reported that China and Russia agreed this week to revisit the issue of constructing the "Power of Siberia-2" gas pipeline.
For many years, Russia has been trying to persuade China to purchase an additional 50 billion cubic meters of natural gas annually, but these efforts have not been successful. However, Bloomberg News reported on Wednesday that this time Beijing is willing to make some concessions in terms of price.
Source close to the matter told the agency that although China has consistently demanded that the natural gas transported through the yet-to-be-built "Power of Siberia-2" pipeline be sold at domestic Russian prices, higher price negotiations may begin during this visit. According to sources, Chinese parties are now ready to negotiate the average price for natural gas supply through the "Power of Siberia" pipeline with reference to domestic Russian prices.
The first "Power of Siberia" gas pipeline began operations in 2019 and reached its planned capacity of 38 billion cubic meters per year last December. Russia estimates that the "Power of Siberia-2" pipeline can transport up to 50 billion cubic meters of natural gas annually from the Yamal gas field.
Russian gas had been supplying Europe until 2022. As planned, this new pipeline will pass through Mongolia into China. However, according to Bloomberg's sources, China prefers a direct route from Russia to China, similar to the original "Power of Siberia" pipeline.
Original article: https://www.toutiao.com/article/1831523372286988/
Disclaimer: This article solely represents the author's personal views.