Miller: the memorandum on the Power of Siberia 2 construction has been signed with China

Alexey Belogoryev, Research and Development Director of the Institute for Energy and Finance, commented to Business FM on the memorandum between Gazprom and CNPC on the Power of Siberia2 gas pipeline construction and increasing the design capacity of supplies via the Power of Siberia gas pipeline and the Far Eastern Route:

"The memorandum itself is a breakthrough in terms of China's clearly stated position that it needs the pipeline. There have been no such signals since about 2020. But neither the start date, nor the completion date, nor the volume are unclear, and this is perhaps the key issue that China guarantees in terms of annual demand. I have significant doubts that China is ready to guarantee demand for 50 billion cubic meters per year for 30 years ahead. Most likely, we are talking about a smaller amount, and the remaining volumes are a reserve capacity in case of increased demand. It is unclear how the construction of the Mongolian and Russian sections will be financed, and the total cost also remains an unclear question, but in any case, even if construction begins next year, for example, the first deliveries are still possible in 2031-2032 at the earliest."