According to journalists, Chinese President Xi Jinping and Russian dictator Vladimir Putin will resume talks this week on the long-delayed Power of Siberia-2 gas pipeline project, which aims to connect the two economies.
Points of attention
- China seeks to replace costly LNG imports with gas from the Power of Siberia-2 project, potentially benefiting its energy security.
- The negotiations face uncertainties due to the US's interest in closer energy ties with Russia, posing a challenge to Sino-Russian energy cooperation.
What Putin and Xi are up to
As journalists have learned, China is now set to negotiate a higher gas price than before.
Official Beijing wants to set a price that will be between the domestic price of gas in Russia and the tariff at which gas is purchased through the Power of Siberia gas pipeline, which began operating in 2019.
One cannot ignore the fact that China and Russia have still not been able to overcome certain differences.
China insists on a direct route, avoiding the route through Mongolia. The first Power of Siberia gas pipeline connects Russia and China directly, but other routes have previously been considered for the second project.
What is important to understand is that Power of Siberia-2 will give Russia the opportunity to supply an additional 50 billion cubic meters of gas per year.
As for China, it will get a chance to replace more expensive imports of liquefied natural gas.
Negotiations on this issue have been dragging on for years, so a significant breakthrough may not happen.
Another uncertain factor in the negotiations is the US's attempts to establish closer contacts with Russia in the energy sector, including possible cooperation with Gazprom.
