Mongolian Transit Of Power of Siberia 2 Pipeline Construction to Begin In 2024
Russia redirecting previously EU-bound Western Siberia gas fields via pipelines to China
Construction of a Russian-Chinese natural gas pipeline transiting through Mongolia will begin in 2024, the Mongolian prime minister has said. The Power of Siberia-2 pipeline, which will deliver Europe-bound gas from western Siberian fields to China for the first time, has a target date to be online in 2030.
However, numerous energy industry experts expect this to be brought forward due to Moscow’s increasingly poor relations with the West over the war in Ukraine and the subsequent sanctions shrinking European markets for its gas supplies.
Mongolian Prime Minister Oyun-Erdene Luvsannamsrai said that construction of the Power of Siberia-2’s Mongolian transit pipelines will go ahead despite the situation in Ukraine. “The feasibility study of this project has finished and we believe construction will begin in 2024,” Luvsannamsrai stated, adding that Moscow had not pressured Ulaan Baatar to accelerate construction of the Power of Siberia-2 line despite Russian energy giant Gazprom’s planned pivot to Asia, and that the final route of Power of Siberia 2 was “still being deliberated.”
The planned capacity of the 2,600-kilometer Power of Siberia 2 is 50 billion cubic meters and will feed directly into China’s national gas network. Mongolia will earn income from transit and related fees, and may also be a small regional market for some of the gas, ending years of Ulaan Bataar’s dreadful winter pollution created by Soviet-era coal power stations on the edge of the city.
Related Reading
About Us
India Briefing is published by Dezan Shira & Associates. The firm assists Russian and other investors into markets in Asia, including India, China, and the ASEAN region, and has done for 30 years. We provide market intelligence, trade advisory, legal establishment and tax services to assist Russian exporters and businesses invest in Asia.
