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Russia and China sign MoU for Power of Siberia 2 gas pipeline – potentially reshaping the global gas map
10/9/2025
News
A legally-binding memorandum of understanding (MoU) has been signed for the long-delayed Power of Siberia 2 (PoS-2) gas pipeline mega-project, which would reroute gas volumes once destined for Europe before the Russian invasion of Ukraine.
The vast pipeline is planned to run along a different path to PoS-1 south-east from Western Siberia through Mongolia to northern China, with a target capacity of 50bn m3/y of natural gas over a 30-year period, and includes provisions for increasing supplies through existing routes.
Deliveries via the existing PoS-1 pipeline are set to rise from 38bn to 44bn m3/y. Supplies through the Far Eastern route and Sakhalin Island through a proposed new connector to PoS-1 are set to start in 2027 and are expected to increase from 10bn to 12bn m3/y.
The project is led by gas giant Gazprom on the Russian side and China National Petroleum Corporation (CNPC) on the Chinese side. Industry analysts suggest a note of caution about the project, given that though the MoU appears to confirm mutual intention by both parties to proceed, several aspects of the project remain under negotiation. There are questions about commercial terms such as pricing, financing arrangements and a final investment decision (FID). And details of the construction timeline have not yet been announced.
However, in May 2025, Gazprom delivered its first 100bn m3 of natural gas to China through the PoS-1 pipeline, as part of contracted volumes exceeding 1,000bn m3, which will continue until mid-2049.
Meanwhile, a sanctioned Russian LNG carrier, the Arctic Mulan, is reported to have discharged at China’s Beihei terminal, according to Energy Politics.
PoS-2 is considered to be a core component of Russia’s Eastern Gasification System, a 5,000 km network which is intended to unlock 9tn m3 of gas resources across Yamal in Western Siberia, Eastern Siberia and the Far East. However, cost is a significant barrier, and the PoS-2 alone is estimated to require $13–15bn, with total infrastructure costs exceeding $27bn. This is required while Gazprom is facing ‘chronic financing constraints’ according to a 2024 report by Rystad Energy.
Timelines could also slip. Although Moscow has suggested PoS-2 pipeline completion in the early 2030s, Rystad suggests that realistic commissioning will be 2035. Looking ahead, there are also discussions about incremental expansions, including PoS-3.
