[Source/Observer Network, Shao Yun]

According to comprehensive reports from Russia Today (RT) website and TASS, Russian Deputy Prime Minister Novak said on the 9th that Russia and China have made progress in negotiations for the "Power of Siberia-2" natural gas pipeline project.

"Both sides have discussed it. This is indeed an important project. Some work has been completed, including feasibility studies... The leaders of both countries have instructed to accelerate the progress of this project," Novak said.

Previously, Russian Energy Minister Shivalyov also told the media on the 7th that active negotiations are underway between Russia and China regarding the "Power of Siberia-2" natural gas pipeline project, and companies are drafting contract terms. However, he also indicated that it is unlikely that a formal agreement will be signed on the 9th, the day of the military parade commemorating the 80th anniversary of the Soviet Great Patriotic War victory.

Photo: Novak, TASS

In 2006, China and Russia signed a Memorandum of Understanding on the supply of natural gas from Russia to China. The two countries plan to build two natural gas pipelines, with the western route (the "Power of Siberia-2") planned to pass through the Altai region, with an estimated length of over 2,000 kilometers. The eastern route natural gas pipeline was officially put into operation in 2019 and fully completed in December last year, while the construction of the western route has not yet progressed.

RT reported that the delay of the "Power of Siberia-2" project is mainly due to the lack of consensus between China and Russia on the gas supply price and pipeline route. It was introduced that there are currently two line options for this project, one being to lay the pipeline via Mongolia, and the other option being to directly connect the pipeline from Russia to China, passing through the Russian border town of Zabaykalsk. The former can shorten the pipeline by 1,000 kilometers but also represents an additional transit fee.

According to Shivalyov's report on the 7th, the specific discussion of the "Power of Siberia-2" route is still ongoing.

It is reported that if finally opened, the "Power of Siberia-2" is expected to deliver up to 50 billion cubic meters of natural gas annually from Russia to China. Russian media analysis suggests that against the backdrop of Western sanctions and reduced European demand, Russia is counting on this pipeline to diversify its energy export market. Novak once envisioned in September 2022 that the "Power of Siberia-2" might replace the Nord Stream 2 pipeline.

Currently, Russia's natural gas supply to Europe accounts for only 19% of European demand, a significant decrease compared to 40% before the outbreak of the Ukraine-Russia conflict in 2022. The European Commission plans to discuss the 17th round of sanctions against Russia in June. It is reported that Brussels hopes to ban new Russian gas transactions by the end of 2025 and terminate imports under existing agreements by the end of 2027.

China-Russia energy cooperation is an important cornerstone of their pragmatic cooperation, with energy trade accounting for more than one-third of the total trade volume between the two countries. According to a report by the Russian newspaper Izvestia on the 9th, Russian President Putin announced in January that Russia is China's largest supplier of crude oil and natural gas, and China is Russia's largest consumer of energy resources.

On April 15, Chinese Ambassador to Russia Zhang Hanhui attended the sub-forum on "Energy Partnership between Russia and Asian Countries" within the framework of the Eurasian Oil and Gas Forum and delivered a speech. According to the Chinese Embassy in Russia, Zhang Hanhui emphasized in his speech that energy cooperation is not only the "stabilizer" of practical cooperation between China and Russia but also the "catalyst" for maintaining global energy market stability and promoting low-carbon transformation.

Zhang Hanhui stated that China is willing to deepen the high-level energy partnership with Russia and promote the high-quality development of energy cooperation. During an interview with major Russian mainstream media such as TASS, RIA Novosti, and RT, Zhang Hanhui mentioned that China's natural gas market demand is growing rapidly, and there is great potential for natural gas cooperation between the two sides. China is willing to increase imports of liquefied natural gas from Russia and promote the construction of new cross-border natural gas pipelines.

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Original source: https://www.toutiao.com/article/7502440947838370313/

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