Russian state-owned energy giant Gazprom has signed a legally binding agreement to construct the Power of Siberia 2 natural gas pipeline to China, a move aimed at pivoting gas exports to Asia as European deliveries decline following Russia’s invasion of Ukraine in 2022.

Speaking in Beijing, Gazprom CEO Alexey Miller announced the deal for the new pipeline, which will traverse Mongolia and is expected to deliver up to 50 billion cubic meters of gas annually for 30 years. 

Proposed more than a decade ago, the Power of Siberia 2 gas pipeline project has faced multiple challenges, with earlier bilateral meetings between Russia and China often ending without a definitive deal signed. 

For instance, in May 2025, when the project was highly anticipated to be approved during Russia’s president’s state visit to China, the meeting ended without a deal or even mention of the key pipeline project.

The now signed deal marks a significant milestone in Russia's strategic shift to strengthen its energy partnership with China, with the new pipeline expected to begin deliveries by 2030, partially offsetting the steep drop in gas exports to Europe.

In addition to the Power of Siberia 2 pipeline deal, Gazprom also agreed to expand deliveries via two other routes and increase gas flows through the existing 38-billion-cubic-meter capacity Power of Siberia pipeline by another 6 billion cubic meters yearly. 

Deliveries via the planned Far Eastern link, which is scheduled to come online in 2027, will also be higher than the initially planned 10 billion cubic meters annually.

Russian state news agencies quoted Miller as saying the price for the gas will be lower than what Gazprom currently charges its European customers.