Russian Hopes on Siberia 2 Deal by Year End

Russia hopes the Power of Siberia 2 pipeline deal with China can agreed “by the end of the year” according to Deputy Prime Minister Alexander Novak.

• It would have a capacity of 50 bcm, almost entirely replacing the flows no longer heading to Europe via Nord Stream.
• Novak said on Tuesday that instructions had been given to gas company Gazprom to reach a deal as soon as possible after China’s Xi Jinping and Putin met in Moscow this week.
• "Now the contract terms are being finalized between Gazprom and the Chinese company CNPC. A feasibility study is already underway, the design of the gas pipeline route through the territory of Mongolia," Novak said.
• China are in a strong position to driven a hard bargain against Moscow with few other options to direct its gas towards. China is understood to not need the extra volumes until 2030 because of other pipeline projects and a swathe of new LNG import deals with the US and Middle East.