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Gazprom signs deal with Mongolia to start works on Power of Siberia 2 gas pipeline

Gazprom has signed a memorandum of intent with the government of Mongolia to create a joint venture, which would be tasked with the development of feasibility studies for the 50 bcm/year Power of Siberia 2 gas pipeline connecting Russia to western China via Mongolia. In May 2020, Gazprom started a feasibility study for the project.

In December 2019, Russia officially started to supply gas to China through the 3,000 km-long Power of Siberia gas pipeline project. As agreed in 2014, Russia delivers 38 bcm/year of gas to China over a 30-year period using the Power of Siberia pipeline. Gazprom supplies gas from the Chayandinskoye field in Yakutia (and from the Kovyktinskoye field located in the Irkutsk region as of early 2023) to Blagoveshchensk, at the Russian border with China, and to Changling in the Jilin province of China.

In July 2019, China began to build a 1,110 km gas pipeline section to the project between Changling and Yongqing (in the Hebei province). The extension will be completed in October 2020. In 2019, Gazprom produced 500 bcm of gas and exported 199 bcm (down from 202 bcm in 2018).