Putin and Xi to discuss Power of Siberia 2 pipeline at SCO summit

Russian President Vladimir Putin and Chinese President Xi Jinping are scheduled to discuss the ‘Power of Siberia 2’ gas pipeline project during a bilateral meeting in Bishkek, Kyrgyzstan. The meeting takes place on the sidelines of the Shanghai Cooperation Organisation (SCO) summit.

The proposed ‘Power of Siberia 2’ project involves a pipeline approximately 2,600 km long, intended to transport 50 billion cubic meters of natural gas per year from Russia’s Yamal Arctic gas fields through Mongolia to China. While the two nations reached a general understanding regarding the route and construction methods following a meeting in Beijing in May, significant obstacles remain.

Disagreements concerning gas pricing and other key terms have prevented the finalization of the agreement. For Russia, the project represents a critical opportunity to expand its gas export capacity to the Chinese market, supplementing the existing ‘Power of Siberia’ pipeline which currently transports over 38 billion cubic meters annually.