On Thursday, the Tass news agency reported that a senior Russian official said talks between Moscow and Beijing on the construction of the Power of Siberia 2 natural gas pipeline are in the final stages. The pipeline will double the current transit capacity of natural gas from Russia to China.

Deputy Prime Minister Aleksandr Novak said it is expected the deal will be completed by the end of this year.

Tass noted Novak said, “Gazprom and China’s CNPC are finalizing their contractual obligations. A feasibility study and the project for the pipeline route through Mongolia are already underway. We hope, we are sure, that our companies will reach an agreement and sign the contract by the end of the year.” 

It is estimated the Power of Siberia 2 pipeline will deliver 50 billion cubic meters of Russian natural gas to China per year, starting in 2030. Combined with the deliveries from the existing Power of Siberia pipeline which entered operation in 2019, it would mean Russia would be delivering 100 billion cubic meters of natural gas per year.

The state of the new pipeline deal was one of the issues which Chinese president Xi had discussed with Russian president Vladimir Putin during his official visit to Moscow this week.

For his part, President Putin had stated during the meeting between the two leaders that almost every aspect of the deal on the new pipeline has already been ironed out.

He emphasized the importance of the growing relationship between the two countries, as Russia has become an increasingly important strategic supplier of electricity, coal, oil, and gas to China.