Gazprom head Alexei Miller announced the agreement following a meeting in Beijing on Tuesday, describing it as a “legally binding construction memorandum.” According to State Newswire Interfax, the trilateral conversation includes Mongolian leader Khurrelsukh Ukhnaa, which sets the country as the transport point for the pipeline.
Once completed, Miller added that the pipeline will allow the transportation of 500 billion cubic meters of gas from Russia to Mongolia annually, with supply set up under a new 30-year contract.
Moscow and Beijing also reached an agreement to increase Russian gas exports to China through two existing routes, increasing the annual rate of 48 billion to 56 billion cubic meters. These supplies are about half the year 230 BC, which Russia exported to Europe before the full-scale war in Ukraine in 2022.
The deal reached after lengthy negotiations between the two countries would significantly increase energy imports from Chinese neighbours, helping to offset the loss of Russia’s European market after the Ukrainian invasion.
As the PS2 project has been discussed for years and the final terms remain uncertain, the speech exceeds the price, and the format of the document as a memorandum indicates that negotiations are still underway, and Miller will inform reporters on Tuesday that details of the commercial issue will be provided separately.
The meeting with Putin is part of China’s President XI’s extensive diplomacy for a week, hosting numerous world leaders at the Shanghai Shanghai Cooperative Organization Security Security Conference, aiming to position Beijing as a reliable alternative to US-led global orders.
China did not immediately comment on the power of the Siberian 2 trading. Following the meeting with the President of Russia and Mongolia, state media reported XI’s statement that “hard connectivity” should be an important direction by actively promoting cross-border infrastructure and energy projects that connect the three countries.
MNA