Construction of the Power of Siberia-2 gas pipeline, a major project aimed at bringing Russian gas to China, may be delayed, Mongolian Prime Minister L. Oyun-Erdene said on Sunday as reported by Reuters, citing a report by the Financial Times.
The pipeline, planned to carry 50 billion cubic meters of gas annually from Siberia to China through Mongolia, was initially expected to begin construction this year.
However, Oyun-Erdene told the Financial Times that key details, including pricing, remain unresolved due to ongoing negotiations between Russia and China, further complicated by recent volatility in global gas prices.
"Those two sides still need more time to do more detailed research on the economic studies," Oyun-Erdene said. "The Chinese and Russian sides are still doing the calculations and estimations and working on the economic benefits."
Gazprom, the Russian state-owned energy giant operating the project, maintains its 2030 target for gas deliveries through the pipeline. However, agreement on critical aspects, including pricing, appears elusive. Both Gazprom and the Kremlin declined to comment on the reported delay.
This development comes as Russia seeks to expand its energy exports to Asia, particularly China, to offset losses incurred following Western sanctions in response to the Ukraine war. Last year, Russian Deputy Prime Minister Viktoria Abramchenko indicated construction on the Mongolian section of the pipeline could start in the first half of 2024.
Whether the project meets its original timeline remains uncertain as negotiations between Russia and China continue.