Russia and China have finalized a landmark agreement for the construction of the Power of Siberia 2 gas pipeline, which will deliver 50 billion cubic meters of gas annually to China over the next 30 years. The deal, valued at approximately $50 billion, was signed earlier today amid increasing energy cooperation between the two nations.
This pipeline represents a significant step in bolstering energy ties, particularly as both countries seek to enhance their economic partnerships in the face of Western sanctions. The agreement builds on the existing Power of Siberia pipeline, which has been operational since 2019 and has already commenced gas deliveries to China.
The Power of Siberia 2 is expected to become operational by 2028, providing a steady supply of gas to fuel China"s growing energy demands. This deal not only underscores the deepening economic relations between Russia and China but also highlights their joint strategy to reduce dependence on Western energy markets.
As previously reported, Russia has been pivoting towards Asia for energy exports as tensions with the West have escalated. The implications of this deal could reverberate through global energy markets, potentially altering the dynamics of supply and pricing in the region.
