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Russian Minister: Memo between Russia and China sets out route and volume for new gas pipeline

The Russian state news agency RIA reported that Russia and China had agreed on the route of the Power of Siberia 2 pipeline and the volumes of gas to be supplied, citing Energy Ministry Sergei Tsivilev.

The signed memorandum states that the pipeline will pass through Mongolia, and it is estimated to deliver 50 billion cubic meters of gas per year.

A binding memorandum was signed by Russia and China during Putin's China visit. However, little is known about key details and Gazprom has said that the pricing of the project still needs to be decided.

Tsivilev stated, "We need to figure out the funding scheme now." We have been granted permission and we are free to act, so we will move quickly." He said that the financing arrangements will likely be finalised by 2026.

Tsivilev said that the Power of Siberia 1 pipe has reached its design limit of 38 billion cubic meters, and Moscow and Beijing agreed to increase this to 44 billion cubic metre.

The design work for increasing capacity is underway. Tsivilev stated that once the design work is completed, specific dates will be announced.

(source: Reuters)