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Russia to deliver gas to China via Mongolia following new pipeline accords

02 September 2025 11:46

Russia will supply gas to China through Mongolia after a legally binding memorandum was signed for the construction of the Power of Siberia 2 and Soyuz-Vostok transit gas pipelines, Gazprom CEO Alexei Miller said on September 2, following talks between the leaders of Russia, China, and Mongolia in Beijing. 

The new route is expected to transport 50 billion cubic metres of gas annually over the next 30 years, Caliber.Az reports via Russian media

In addition, Gazprom and China National Petroleum Corporation (CNPC) agreed to increase supplies via the existing Power of Siberia pipeline from 38 billion cubic metres per year to 44 billion cubic metres. Miller noted that payments for gas are currently split evenly between roubles and yuan.

Responding to questions about gas prices, the head of Gazprom said, ‘We will report on commercial issues separately.’

Miller explained that gas prices for China are lower than for Europe because the supplies come from Eastern Siberian fields, which are closer to China and Mongolia, reducing transport costs. He added that plans for the pipeline through Mongolia were established over a decade ago, before the main Power of Siberia pipeline began operations in 2019.

"We must remember when the decision was made to build Power of Siberia 2 and the Soyuz-Vostok gas pipeline. They were made even before the Power of Siberia main pipeline was put into operation [2019], even before Russian gas supplies to China physically began,” he added. 

Russian gas supplies to China via the Power of Siberia pipeline began in 2019 as part of a long-term gas purchase agreement between Gazprom and CNPC. Every year since 2020, supplies have exceeded annual contractual obligations. In 2024, 31.12 billion cubic metres of gas were exported via the pipeline. In the first eight months of 2025, Gazprom increased its natural gas supplies to China by 28%. On 1 December 2024, one month ahead of the original deadline, daily deliveries via the Power of Siberia pipeline reached the maximum contractual level (38 billion cubic metres per annum).

By Sabina Mammadli

Caliber.Az
Views: 179

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