Russia and China Intensify Gas Negotiations as Power of Siberia 2 Remains Uncertain
Russia’s Ministry of Energy confirmed this week that high-level discussions have taken place between Moscow and Beijing regarding the supply of liquefied natural gas (LNG), pipeline gas, and broader cooperation in energy infrastructure and fossil fuel projects.
Russian Energy Minister Sergey Tsivilev and Chinese Ambassador to Russia Zhang Hanhui discussed LNG deliveries, the development of natural gas transportation infrastructure, and collaboration in oil and coal sectors, according to Gasbonyan.
Since the outbreak of the war in Ukraine, China has emerged as a major importer of Russian energy, absorbing a significant share of Russian oil, gas, and coal previously destined for European markets. In response to Western sanctions and G7-imposed oil price caps, Russia has strategically pivoted eastward, deepening its energy trade with Asian partners—most notably China.
While China continues to import discounted Russian crude and pipeline gas, it has not yet made a formal commitment to purchase gas from Siberian fields via the proposed Power of Siberia 2 pipeline.
Gazprom began supplying pipeline gas to China via the Power of Siberia in late 2019. The pipeline is now operating at its full design capacity. However, the anticipated expansion through Power of Siberia 2, intended to double export volumes, appears increasingly delayed.
Following the rupture of long-standing energy ties between Russia and Europe due to the Ukraine war, China has assumed a critical role as both a primary gas buyer and a strategic partner. Yet negotiations over pricing remain a key sticking point, as China leverages its position to negotiate favorable terms.
Tsivilev recently stated that Russia is in the “active phase” of negotiations with China concerning the Power of Siberia 2 pipeline. However, Russian news agency TASS reported that despite the ongoing discussions, a final agreement remains unlikely in the near term.
