Russia-China Power of Siberia 2 Gas Pipeline Delay Rooted in Logistics, Not Price According to Envoy
The long-delayed Power of Siberia 2 gas pipeline project between Russia and China is held up by technical and logistical hurdles rather than pricing disagreements, a senior Russian official said.
Boris Titov, chairman of the Russian side of the Russia-China Committee for Friendship, Peace and Development, told the TASS news agency that media reports attributing the delay to price disputes are inaccurate. Titov also serves as a special envoy to the Russian president.
"This is not about us not being able to agree on the price level," Titov said. "The main difficulty relates to logistics, specifically choosing a suitable option for the route of this gas pipeline."
Titov, who noted he is not directly in charge of the negotiations but is privy to the details through his committee role, described the current impasse as a routine technical issue that will be resolved soon.
The proposed 2,600-kilometer (1,615-mile) pipeline is designed to connect gas fields in western Russia to China's energy grid, bypassing Europe. Initial discussions for the massive energy corridor began in 2006, but the project has faced repeated delays, and the final agreement remains unsigned.
Once fully operational, the Power of Siberia 2 pipeline is planned to transport roughly 50 billion cubic meters of natural gas annually to China. The project was previously valued at approximately $13.6 billion.
Finding an agreeable route has proven complicated. The pipeline is expected to transit through Mongolia, requiring complex trilateral coordination regarding transit fees, environmental impact assessments, and technical construction standards across rugged terrain.
While Western analysts have frequently suggested that Beijing is leveraging its position as Russia’s primary energy buyer to demand steep discounts, Titov emphasized that the financial framework is not the primary obstacle.
Moscow has increasingly relied on Asian markets to sustain its energy revenue following international sanctions that choked off its traditional European export routes.