China has included two pipelines transporting natural gas from Russia in the draft of its new five-year plan, raising market debate on whether the Power of Siberia 2 – a closely watched project viewed as symbolic of bilateral relations – could be on the fast track for construction.
Along with language on two other pipelines, the draft said China would “advance preparatory work for the central route of the China-Russia natural gas pipeline” in the next five years, which some market observers interpreted as referencing the Power of Siberia 2, which would also pass through Mongolia.
However, some analysts said a completion date remained distant in the absence of public agreement between Beijing and Moscow on certain details.
The draft version of the country’s development blueprint for 2026 to 2030, released last week during the annual session of China’s top legislature, did not elaborate further.
Aleksei Chigadaev, an associate fellow at New Eurasian Strategies Centre, said several issues needed resolving before work on the whole pipeline could kick off, including the exact stakes of Russia’s Gazprom and China National Petroleum Corporation (CNPC), the two state-owned energy giants spearheading the project.
Also, questions remained over who would pay for the construction and what price would be agreed for the gas sent through the pipeline, he added.
“It is a very long, capital-intensive project that will take many years to complete,” Chigadaev said.
