Gas price disagreement stalls Power of Siberia 2 negotiations between Russia and China
Talks on the Power of Siberia 2 pipeline have hit a standstill as Russia and China cannot agree on a gas price, according to sources.
Bilateral talks between Moscow and Beijing on the Power of Siberia 2 pipeline have stalled, with officials unable to reconcile a substantial difference in gas pricing. Russia is pushing for a reference to the Power of Siberia 1 price, which sits at roughly US$250-260 per thousand cubic metres, whereas China cites its average import cost of about US$258 per thousand cubic metres. The dispute is highlighted against a backdrop of Russia's pre-war European gas price of over US$420 per thousand cubic metres.
Sources also indicate that Gazprom and China National Petroleum Corporation are preparing to boost Russian gas deliveries to China via the Far East corridor and are working on expanding the existing Power of Siberia 1 supply. The lack of progress threatens the timeline for the new pipeline project.
Why it matters
The stalled talks could delay a major energy link that affects both Russian export revenues and China's gas supply strategy.
In this story
