Why in news?
Russia’s state‑owned energy company Gazprom signed an agreement with China National Petroleum Corporation to build the Power of Siberia 2 natural‑gas pipeline, signalling a shift in Russia’s energy strategy after Europe reduced its imports.
What is the project?
The proposed pipeline will link gas fields in western Siberia to China via Mongolia. It follows the first Power of Siberia pipeline (operational since 2019) but is designed to carry greater volumes and traverse a different route.
Route and capacity
- Route: About 6,700 km long, the pipeline will start from Russia’s Yamal Peninsula, skirt Lake Baikal, pass through Mongolia and end in China.
- Capacity: It is expected to deliver roughly 50 billion cubic metres of gas annually. For comparison, the first pipeline transports 38 billion cubic metres, and pre‑war Russian exports to Europe were around 180 billion cubic metres per year.
Significance
- Energy diversification: The project helps Russia offset lost revenue from European markets and deepens its partnership with China.
- Geo‑economic considerations: China gains a steady supply of natural gas, while Mongolia may receive transit fees and infrastructure benefits.
- Strategic implications: The pipeline underscores shifting alliances in global energy as countries adjust to geopolitical tensions and decarbonisation trends.