Russia is building a massive, 50 billion cubic meter gas pipeline to China
Despite economic sanctions imposed by Western countries, Russian gas firm Gazprom is moving through with plans to build a 50 billion cubic meter gas pipeline to China, according to Business Insider.
Russia’s economy relied heavily on gas and oil exports, with European countries serving as main customers. However, following Russia’s intrusion of Ukraine, European nations have imposed economic sanctions, such as banning Russian banks from the global payments system, but have yet to restrict Russian energy supplies, according to Business Insider.
Germany has put the Nord Stream 2 pipeline, which was supposed to transport gas into mainland Europe, on hold. However, Nord Stream 1, which provides gas to Europe at the moment, is still operational.
Gazprom is seeking for ways to expand its gas supply after energy majors like as Shell and BP announced their plans to withdraw from Russian energy enterprises, and China, as the world’s fastest-growing gas market, is an appealing destination. It also assists that China has avoided referring to Russia’s recent military moves as an invasion.
Gazprom inked a 30-year agreement with China in 2014 to provide 38 billion cubic meters of gas per year. According to Bloomberg, supplies under this agreement commenced in 2019 when the Power of Siberia pipeline was completed.
Gazprom is aiming to strengthen its ties with China by constructing the Power of Siberia 2 gas pipeline, also known as the Soyuz Vostok. According to a press statement, the company’s Chairman Alexey Miller recently met with Mongolia’s Deputy Prime Minister, Sainbuyan Amarsaikhan, to discuss the pipeline’s execution across Mongolia.
As during conference, a concept and study work agreement for the pipeline’s construction was signed, with Mongolian businesses conducting land and archaeological surveys and assessing the project’s environmental impact, according to the news article.
The development’s project plan was approved last month, with a 598-mile portion of the pipeline running through Mongolian territory. The pipes would be 55 inches in diameter, with five compressor stations erected along the path to allow for the delivery of 50 billion cubic meters (1.8 trillion cubic feet) of gas to China.
If the agreement with China is reached, Russia will also construct an interconnector between its west and east-bound pipelines, allowing it to divert gas currently supplied to Europe to China, lessening its reliance on European imports.
“The Soyuz Vostok gas pipeline project is moving along quickly and satisfactorily. The feasibility study’s findings were approved a month ago, and a design contract was signed today. This indicates that the project has progressed to the implementation stage “In a news statement, Alexey Miller stated.