Input Stories

Input Stories

China, Russia Completing Construction on a Joint LNG Pipeline

Russia and China are finishing construction of the first pipeline to send gas from Siberia to Shanghai, according to CNBC, completing a project in the works for nearly a decade.  

What’s happening: “‘Power of Siberia’—as the portion located in Russia is called—began delivering natural gas to northern China in December 2019, according to Chinese state media.”  

  • The middle phase of the pipeline began operations in December 2020, and the final section is expected to start gas delivery in 2025. 
  • Russia’s Gazprom and China National Petroleum Corporation began construction of the pipeline in 2014 as part of a decades-long gas deal.

Why it’s important: “China has been looking to diversify its energy sources. Beijing has refused to condemn Moscow for its unprovoked invasion of Ukraine in late February. The scale of the China–Russia gas pipeline indicates it is just one of many energy options for Beijing.”  

  • Russia has already invested $55 billion in the deal.  
  • In the first half of 2022, Gazprom’s gas exports to China through the pipeline increased 63.4%, Russia’s Interfax news agency reported.

Further collaboration: “The two countries have discussed building additional gas pipelines, including one expected to run from Siberia through the country of Mongolia. The Financial Times reported this month that Mongolia expects the new gas pipeline, known as the ‘Power of Siberia 2,’ to begin construction within two years.”  

  • China and Russia are also working together on the development of nuclear power.  
  • “In May 2021, Chinese President Xi Jinping and Russian President Vladimir Putin spoke virtually at a groundbreaking event for joint construction projects at two nuclear power plants in China.” 

The NAM’s take: “Amid today’s news of Russia and China forging new energy ties, manufacturers urge the United States to deepen engagement with global allies to hold Russia accountable, tackle problematic Chinese actions that harm U.S. security and economic competitiveness and boost energy cooperation,” said NAM Vice President of International Economic Affairs Ken Monahan.   

  • “These efforts are crucial as we invest in manufacturing and critical inputs here at home to boost our economic resilience given the myriad challenges that we face.” 
View More