The Power of Siberia 2 is a proposed natural gas pipeline project connecting the Yamal Peninsula in Western Siberia to China via Mongolia. The project aims to transport 50 billion cubic metres (bcm) of gas annually for 30 years.
Following European sanctions and reduced gas imports due to the Ukraine conflict, Russia is redirecting its energy exports to Asia. Power of Siberia 2 will help offset the loss of its European market and secure a stable long-term customer in China.
For China, the pipeline diversifies energy imports, ensuring a steady gas supply from a land route instead of relying heavily on maritime LNG shipments. It strengthens energy security and may allow China to negotiate lower prices due to its strong bargaining position.
Power of Siberia 1 connects Russia’s Eastern Siberian fields to northeastern China and began operations in 2019. Power of Siberia 2 will draw gas from Western Siberia—fields that once supplied Europe—and send it to northern China through Mongolia.
The project is expected to cost around USD 13–14 billion. Even with early construction, it may not become fully operational before the early 2030s due to its technical scale and regulatory clearances.
Major challenges include finalising gas pricing, securing financing, obtaining environmental approvals, and aligning Russian and Chinese interests. Mongolia’s role as a transit country also adds logistical and political complexity.
If completed, it will reinforce Russia’s pivot to Asia and increase China’s gas supply options. This could influence global LNG demand, potentially lowering prices in the Asia-Pacific region.
The project represents the deepening energy and geopolitical partnership between Russia and China amid changing global alignments. It underlines Moscow’s eastward economic re-orientation and Beijing’s strategy to secure stable, long-term energy resources.
“Energy diplomacy shapes alliances more powerfully than treaties.”
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