Power Of Siberia 2 Explained: Why The Gas Pipeline Xi Jinping And Putin Discussed Matters

Power Of Siberia 2 Explained: Why The Gas Pipeline Xi Jinping And Putin Discussed Matters Published By, Last Updated: May 20, 2026, 16:18 IST Power of Siberia 2 is a proposed natural gas pipeline that would transport Russian gas from the Yamal region in Siberia to China through Mongolia. Rapid Read The pipeline is expected to carry up to 50 billion cubic metres of gas annually- roughly equivalent to the volume Russia once supplied to Europe. As Vladimir Putin and Xi Jinping held talks in Beijing, one project once again moved into focus- the long-delayed Power of Siberia 2 gas pipeline. The pipeline is seen as a crucial economic and geopolitical project for both Moscow and Beijing, especially as Russia seeks new energy markets after Western sanctions linked to the Ukraine war. Here’s what the proposed pipeline is, why it has faced delays and what could happen next. What Is Power Of Siberia 2 Pipeline? Power of Siberia 2 is a proposed natural gas pipeline that would transport Russian gas from the Yamal region in Siberia to China through Mongolia. The pipeline is expected to carry up to 50 billion cubic metres of gas annually- roughly equivalent to the volume Russia once supplied to Europe through some of its major western routes. The project would connect western Siberian gas fields, which historically served Europe, to the Chinese market. Russia already supplies gas to China through the original Power of Siberia pipeline, which began operations in 2019 and transports gas from eastern Siberia into northeastern China. Why Is The Pipeline Important For Russia? The project has become strategically important for Moscow since the breakdown of Russia’s energy relationship with Europe after the invasion of Ukraine in 2022. Western sanctions and Europe’s efforts to reduce dependence on Russian energy sharply cut Moscow’s gas exports to European countries. For the Kremlin, Power of Siberia 2 offers a potential long-term replacement market for those lost exports. China is already Russia’s largest trading partner and one of the biggest buyers of Russian oil. Expanding gas exports would deepen that economic relationship further. Why Does China Care About The Project? For China, the pipeline could strengthen long-term energy security by increasing access to relatively cheap pipeline gas from Russia. Beijing is seeking stable energy supplies as it balances economic growth, industrial demand and geopolitical uncertainty in global energy markets. The pipeline would also reduce reliance on maritime shipping routes that could become vulnerable during regional conflicts or tensions in places such as the Strait of Hormuz or the South China Sea. Why Has The Deal Been Stalled? Despite years of negotiations, the project has repeatedly faced delays, largely due to disagreements over pricing and commercial terms. China has reportedly pushed for lower gas prices, taking advantage of Russia’s weakened bargaining position after the Ukraine war and Western sanctions. Beijing also does not face the same urgency as Moscow because China already imports gas from multiple suppliers, including Central Asia, Qatar and Australia. What Happens Next? If completed, Power of Siberia 2 could significantly reshape global energy flows by redirecting a large share of Russian gas exports from Europe to Asia. For Russia, the project represents an economic necessity. For China, it is more of a strategic option- giving Beijing greater leverage in negotiations. News18 Newsletter Handpicked stories, in your inbox A newsletter with the best of our journalism submit Location: Russia First Published: May 20, 2026, 16:18 IST News world Power Of Siberia 2 Explained: Why The Gas Pipeline Xi Jinping And Putin Discussed Matters Disclaimer: Comments reflect users’ views, not News18’s. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy Loading comments...