What’s the massive Russia-China gas pipeline that Putin and Xi discussed? – Firstpost

Russian President Vladimir Putin and Chinese President Xi Jinping used their latest summit in Beijing to once again showcase the growing strategic alignment between Moscow and Beijing, with energy cooperation emerging as one of the central pillars of the discussions.

Among the most closely watched issues during the visit was the long-delayed Power of Siberia 2 gas pipeline project, a proposed mega energy corridor that would transport Russian natural gas from Arctic Siberia to China through Mongolia.

Although the two leaders reaffirmed their commitment to deepening economic and strategic ties, the summit ended without a final construction agreement for the pipeline.

Even so, officials from both countries indicated that negotiations had moved forward, keeping alive one of the world’s most consequential energy infrastructure projects.

The latest discussions in Beijing
came shortly after United States President Donald Trump visited the Chinese capital.

“China-Russia relations have reached this level because we have been able to deepen political mutual trust and strategic cooperation,” Xi said at the start of his meeting with Putin.

Putin responded by describing bilateral ties as stronger than ever. The Russian leader said relations between the two countries had “reached a truly unprecedented level and continue to develop.”

Both sides used the summit to focus on cooperation in trade, security, diplomacy, and energy. Russia and China jointly
signed a statement on strengthening comprehensive strategic coordination and another declaration supporting multipolarity in global governance.

“The global agenda of peace and development is facing new risks and challenges, with the danger of fragmentation of the international community and a drift back toward the ’law of the jungle’,” a joint declaration released by the Kremlin stated.

The summit also resulted in the signing of around 20 cooperation documents, with additional agreements expected afterwards, according to Russian officials.

Putin additionally invited Xi to visit Russia next year.

What is the Power of Siberia 2 pipeline?

The Power of Siberia 2 project is a proposed 2,600-kilometre (1,616-mile) natural gas pipeline that would move gas from Russia’s Yamal Peninsula in Arctic Siberia into northern China via Mongolia.

If completed, the pipeline would transport up to 50 billion cubic metres (bcm) of gas annually.

The volume is comparable to the designed annual capacity of the Nord Stream 2 pipeline, which had originally been intended to expand Russian gas exports to Europe before geopolitical tensions and subsequent damage halted its future.

The planned system would begin in the Yamal gas fields, one of Russia’s largest energy-producing regions in the Arctic.

From there, the route would pass through western and central Siberia before entering Mongolia and eventually linking into China’s northern gas network.

The project is being spearheaded by Russian state energy giant Gazprom, which started feasibility studies in 2020. In September 2025, Gazprom announced that a legally binding 30-year supply memorandum had been signed concerning the project.

Russian and Chinese officials have since repeatedly described the pipeline as a key component of long-term bilateral energy cooperation.

The Kremlin said during the summit that Moscow and Beijing had already reached a “general understanding” regarding the project’s route and construction process.

Kremlin spokesman Dmitry Peskov said, “The president said during the talks that, overall, there is already a shared understanding of the main parameters for Power of Siberia 2.”

“There is agreement on the route and on how the project will be built. Some details still need to be finalised, but in general such an understanding is already in place,” he added.

Despite those comments, no timeline for implementation was announced.

How is Power of Siberia 2 different from the existing pipeline?

Russia and China already operate one major gas pipeline known as Power of Siberia [Power of Siberia 1], also called the China-Russia East-Route Natural Gas Pipeline.

That pipeline began operations in 2019 and currently transports more than 38 bcm of natural gas annually from eastern Siberia into China. During Putin and Xi’s previous meeting in September 2025, both countries agreed to expand its capacity to 44 bcm per year.

While the first pipeline draws gas from eastern Siberian fields such as Chayandinskoye and Kovyktinskoye, the Power of Siberia 2 project would source gas from the Yamal Peninsula in western Arctic Siberia.

Those reserves were historically developed with European export markets in mind.

Another major distinction is the route. Power of Siberia 1 directly links Russia and China, whereas the new project would pass through Mongolia, making it a trilateral undertaking involving additional regulatory and financial coordination.

The planned capacity of the second pipeline would also exceed that of the first system. Power of Siberia 2 is designed to transport 50 bcm annually, compared to the current 38 bcm handled by Power of Siberia 1.

The inclusion of Mongolia could bring economic advantages for Ulaanbaatar through transit fees and access to gas infrastructure.

Why has the project become so important for Russia?

The strategic value of Power of Siberia 2 for Russia has grown dramatically since the beginning of
the Ukraine war and the sanctions imposed afterward by Western countries.

Before 2022, Europe was Gazprom’s largest and most profitable export market. Russian pipelines supplied huge quantities of natural gas to European economies, generating substantial revenue for Moscow.

However, sanctions, political tensions, and the collapse of energy ties with many European countries left Russia with large gas reserves and fewer buyers for its western Siberian production.

As a result, Moscow
has accelerated efforts to redirect energy exports towards Asia, particularly China.

The Yamal gas fields that would supply Power of Siberia 2 were originally central to Russia’s European export strategy. By linking those fields to China instead, Russia hopes to create a replacement market capable of offsetting some of the losses caused by the reduction in European demand.

Putin has repeatedly stated that Russia remains a reliable energy supplier despite disruptions in global energy markets
and instability in West Asia.

The strengthening Russia-China energy partnership has also coincided with the expansion of what both governments describe as a “no limits” relationship, particularly after Western sanctions isolated Russia from many Western financial and trade networks.

Why is China approaching the project more cautiously?

Although Beijing supports the idea of expanding energy cooperation with Russia, China’s position in the negotiations is very different from Moscow’s.

China views the pipeline primarily through the lens of energy security and supply diversification rather than immediate economic necessity.

Overland gas routes from Russia reduce China’s dependence on maritime energy transport, especially shipping lanes that pass through strategic chokepoints such as the Strait of Hormuz and the Strait of Malacca.

Pipeline imports are generally considered less vulnerable to naval disruptions or regional conflicts.

At the same time, China already possesses a highly diversified natural gas import system, giving Beijing greater leverage in negotiations.

Pipeline imports reached 59.4 million tonnes in 2025 and accounted for roughly 19 per cent of China’s domestic natural gas consumption.

Apart from Power of Siberia 1, China imports gas through multiple Central Asian pipelines originating in Turkmenistan and Uzbekistan and crossing Kazakhstan into Xinjiang. Those three major pipelines together provide more than 40 bcm of gas annually.

China also operates the Myanmar-China Gas Pipeline in the south. The 793-kilometre pipeline became operational in 2013 and was designed to transport 12 bcm annually.

In addition, Russia and China are currently constructing another gas pipeline from Russia’s Pacific island territory of Sakhalin, with an expected capacity of 10 bcm per year.

China is also a major importer of liquefied natural gas from countries including Qatar and Australia, reducing the urgency of reaching a quick agreement with Moscow.

This broader supply network means Beijing does not face the same pressure as Russia to finalise the Power of Siberia 2 deal.

What are the major disputes delaying construction?

Despite years of negotiations and repeated public support from both governments, several core disagreements continue to prevent a final agreement.

The biggest obstacle remains pricing.

Russia is
reportedly seeking a pricing structure linked to international market formulas, similar to the system historically used for gas exports to Europe. Putin stated during previous discussions that pricing for the proposed pipeline would follow a market-based approach.

China, however, is believed to be seeking heavily discounted rates that are closer to Russia’s domestic gas prices, using its position as Russia’s most important remaining large-scale gas customer to gain leverage in negotiations.

Another disagreement concerns long-term purchase commitments. Moscow wants Beijing to commit to buying the pipeline’s full proposed capacity of 50 bcm annually in order to justify the enormous infrastructure costs associated with the project.

China appears to prefer a more gradual approach that avoids excessive dependence on a single supplier.

Financing has also emerged as a key challenge. The construction of a major transnational gas corridor through Siberia and Mongolia would require billions of dollars in investment.

Western sanctions on Russia have complicated Gazprom’s access to international capital markets and advanced pipeline technology, creating additional financial pressure.

While officials have described progress in discussions, no binding construction agreement has yet been finalised. There was an absence of any oil or gas agreements from the official documents published after the May 20, 2026 Putin-Xi summit.

With inputs from agencies