Russia and China have signed a legally binding Memorandum of Understanding (MoU) for the Power of Siberia 2 gas pipeline project. The pipeline is planned to run from Russia through Mongolia to China, with a target capacity of 50 bcm/year of natural gas, over a 30-year period. The agreement also includes provisions for increasing gas supplies through existing routes. Deliveries via the Power of Siberia 1 pipeline are set to rise from 38 to 44 bcm/year. Supplies through the Far Eastern route and Sakhalin Island, set to start in 2027, are expected to increase from 10 to 12 bcm/year.
The project is led by Gazprom on the Russian side and China National Petroleum Corporation (CNPC) on the Chinese side. While the memorandum confirms mutual intention to proceed, several aspects of the project remain under negotiation. These include commercial terms such as pricing, financing arrangements, and a final investment decision. A construction timeline has not yet been announced.
In May 2025, Gazprom announced it has delivered its first 100 bcm of natural gas to China through the Power of Siberia pipeline, as part of contracted volumes exceeding 1,000 bcm, which will keep going until mid-2049.