Gazprom, CNPC discuss boosting Russian gas supplies to China amid stalled Siberia-2 talks

The chiefs of Gazprom and China National Petroleum Corp met in Beijing on Friday to chart wider Russian gas deliveries, as the Power of Siberia pipeline nears full 38 billion-cubic-metre capacity and the two sides still haggle over prices for a larger Siberia-2 link.

Russia’s state gas giant said Chief Executive Alexei Miller and CNPC Chairman Dai Houliang “considered further steps to expand co-operation in pipeline and LNG supplies” during the talks, part of Moscow’s drive to deepen energy ties with the world’s biggest gas consumer.

Since Moscow’s 2022 invasion of Ukraine, Gazprom has lost most of its European market and is pivoting east. Exports through the 3,000-km Power of Siberia line, which began operating in late 2019, are on track to hit its design capacity of 38 billion cubic metres a year—about 1.3 trillion cubic feet—by December, company data show.

The partners have also agreed to ship 10 billion cubic metres annually from Russia’s Sakhalin Island starting in 2027, but years of negotiations on the 50 billion-cubic-metre Power of Siberia 2 project via Mongolia remain bogged down in pricing and contract terms, officials familiar with the talks said.

Kremlin aides hope a visit by President Vladimir Putin to Beijing in early September—his second trip since striking a “no-limits” partnership with President Xi Jinping—can unblock the deal. China’s leader travelled to Moscow on a state visit in May.

Chinese demand for natural gas rose more than 7 % last year and already accounts for roughly one-quarter of global growth, according to the International Energy Agency. If Siberia 2 proceeds, Russia could ship nearly 100 billion cubic metres a year to China, matching its pre-war pipeline sales to the European Union.

CNPC did not immediately comment on the outcome of Friday’s meeting. Energy analysts say Beijing is balancing the proposed Russian route against a delayed Central Asia pipeline from Turkmenistan, aiming to diversify import risks while securing competitive prices.

Copied