INSUBCONTINENT EXCLUSIVE:
Moscows proposition to transport Russian gas via Kazakhstan as an alternative to the shelved Power of Siberia 2 pipelinehas stopped working
to gain traction in Beijing.The plan, announced by Moscow in the fall of 2024, pictured the shipment of up to 45 billion cubic meters (bcm)
of Russian gas annually to China through Kazakhstan
But Chinese Ambassador to Russia Zhang Hanhui said the job would not go forward, mentioning extreme costs.Gas materials from Russia through
Kazakhstan arent feasible, Interfax priced quote Zhang as stating to reporters Tuesday
Theres just one pipeline, and its already operating at complete capacity
To transfer Russian gas through this route, wed requirement to build a new pipeline
The Russian side is studying this option, however its not realistic
Its not possible.Russian Deputy Prime Minister Alexander Novak initially drifted the concept in November 2024, soon after talks over the
Power of Siberia 2 pipeline fell through.President Vladimir Putin had originally proposed Power of Siberia 2 to Chinese leader Xi Jinping in
2022, a project that would increase Beijings purchases of Russian gas to 100 bcm per year to offset the loss of European market share
following the intrusion of Ukraine.But in spite of warm rhetoric about a no-limits tactical partnership and Putins duplicated trips to
Beijing, Xi has yet to provide the project the green light.According to the Financial Times, the sticking point has actually been price:
China reportedly askedthat Russia sell its gas at domestic Russian rates about $60 per 1,000 cubic meters
Thats roughly one-quarter of what China presently pays under the Power of Siberia 1 agreement, which provides gas at $260 per 1,000 cubic
Additionally, China was only prepared to buy a portion of the pipelines capacity of 50 bcm, feet reported.At the end of 2023, Russian
officials insisted that Power of Siberia 2 prepared to deliver 50 billion cubic meters of gas per year remained in an advanced phase of
preparedness, with job documentation anticipated to be approved in early 2024
But more than a year later, construction has yet to begin.Mongolia, through which the 2,500-kilometer pipeline would have passed, has not
included the Gazprom-led job in its long-term action plan through 2028, The South China Morning Post reported.Russia has stopped working to
reach final terms with China, verified Munkhnara Bayarkhavaa, a former member of Mongolias National Security Council.Last year, Gazprom
delivered 31 billion cubic meters of gas to China
That figure is anticipated to increase this year to38 billion cubic meters, the complete capacity of the Power of Siberia 1 pipeline
Nevertheless, that still represents only about 15% of Russias former exports to the European Union, which peaked at around 200 billion cubic
meters annually.Meanwhile, European demand for Russian gas has actually collapsed following the full-scale intrusion of Ukraine
In 2023, exports to the EU dropped to 28 billion cubic meters, and are forecasted to reach just 32 billion in 2024 levels not seen given
