Free Trial

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.

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.