Moscow (Brussels Morning Newspaper) – Russia’s Gazprom has consented to a modest increase in gas supplies to China through an existing pipeline and has also signed a memorandum to develop the extensive Power of Siberia 2 pipeline, though at prices lower than those offered to European customers, according to state news agencies.
The development comes amid Russia’s push to bolster its energy relationship with China, its largest trading partner, following the loss of market share in Europe due to sanctions following the conflict in Ukraine in 2022.
Last month, Reuters reported that China was looking to purchase additional Russian gas through an existing pipeline after negotiations stalled for a new pipeline.
What are the details of the Power of Siberia 2 project?
Alexei Miller, CEO of Gazprom, the Russian state-owned natural gas company, reported on Tuesday that a deal had been reached to increase supplies through the existing Power of Siberia pipeline from 38 bcm to 44 bcm a year. The Power of Siberia pipeline connects eastern Siberia to China.
Russia and China have also agreed on a deal to build a new Power of Siberia 2 pipeline, which will export 50 bcm a year to China through Mongolia. Miller reported that the gas will be sourced from the Yamal located Bovanenkovo and Khanasavey fields.
“Today, a legally binding memorandum was signed on the construction of the Power of Siberia 2 gas pipeline and the Soyuz Vostok transit gas pipeline through Mongolia,”
Miller said, Russian news agencies reported.
Why is China paying lower prices than European buyers?
Miller stated that China’s gas supply prices are cheaper than what Russia charges European buyers, mainly because of the extensive distances and challenging terrain for pipeline construction. He noted that Power of Siberia 2 will be the biggest and most capital-intensive gas project in the world.
Miller said this after President Vladimir Putin met with Chinese President Xi Jinping and Mongolian President Ukhnaagiin Khurelsukh in Beijing. He indicated that gas pricing, for gas supplied through Power of Siberia 2, would be negotiated separately, according to Russian news agencies.
As reported by China’s state news agency Xinhua on Tuesday, the two leaders discussed a variety of topics in detail. They concluded the meeting by signing over 20 bilateral cooperation agreements in multiple areas, including energy. Gazprom shares were up 0.5% in trading in
Can’t wait for the “Siberian Extravangaza” to kick off, where China gets gas at discount rates while we in Europe are left watching from the sidelines, sipping overpriced lattes ☕️. Who knew cozying up to your biggest rival could be so… profitable? 😂 Looks like Gazprom’s decided that selling gas to China at a discount is the new ‘go big or go home’ strategy—nothing says “we’re winning” like cutting prices for your best mate while Europe looks on with a cup of lukewarm coffee. ☕️💸 Looks like Europe just lost another round in the gas game! Who knew that cozying up to China would come with a discount? 😂💨 Looks like Gazprom has decided to give China a little gas discount while the rest of Europe gets the cold shoulder. Just what we need—more pipelines and less common sense! 😂 Looks like Gazprom has finally found its soul mate in China—thank goodness someone is willing to pay for their gas at bargain prices! 💨💰 Better luck next time, Europe; maybe try sending them a nice gift or something? 😏 Just what the world needs, another pipeline project with a price tag that’s lower than my morning coffee ☕. But hey, as long as it’s cheaper for China, who cares about Europe, right? 😂 So, Gazprom’s giving China a sweet deal while Europe gets the cold shoulder—guess it’s all about knowing your customers, eh? 😂 Just wait till the next round of negotiations; I hear the price of gas is going to be the hottest gossip in town! So, Gazprom’s decided to give the Chinese a sweet deal while we in Europe are still waiting for our gas bills to arrive—brilliant strategy, no? Guess the only pipeline we’ll see is the one leading straight to their wallets! 😂💸 Looks like Gazprom is really rolling out the red carpet for China while keeping Europe in the doghouse. Who knew that selling gas could be so much more fun when you’re not obligated to play nice with the neighbors? 😂 Just what we needed, another pipeline deal to remind us that Europe is now just a distant memory in the energy game. Bravo, Gazprom! Sending gas under the Mongolian sky while we’re left here gasping for alternatives. 😂 A pipeline to China, huh? Guess they figured why sell to the neighbors at a premium when they can give their best mates a bargain! 😂 #EasternEconomics London, United Kingdom, June 19 – Eurotoday Newspaper — UK consumer spending received renewed attention after stronger-than-expected retail sales figures helped lift confidence in the British economy and supported the value of sterling. The latest economic data suggested households continued spending despite ongoing concerns over inflation and borrowing costs, providing investors with fresh opti Middle East, June 19 – Eurotoday Newspaper — Israel Hezbollah ceasefire is scheduled to begin on Friday after Israel and Hezbollah reportedly agreed to halt hostilities under a US-backed arrangement, according to a US official familiar with the negotiations. The Israel Hezbollah ceasefire comes after weeks of military exchanges along the Israel-Lebanon border that raised concerns about a broader Paraguay Match in Santa Clara Raises Questions About Türkiye’s World Cup Comeback
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