Russia and China signed a legally binding memorandum (Sept 2025) to construct the Power of Siberia 2 (PoS-2) gas pipeline.

About PoS-2 Pipeline

• Route: Transits gas reserves from Russia’s West Siberia (Yamal Arctic fields) to northern China via eastern Mongolia, including the Soyuz Vostok segment (~950 km).
• Capacity: 50 billion cubic metres (bcm) annually.
• Complement to PoS-1:
• • Power of Siberia 1: Operational since 2019.
  • Supplies 38 bcm/year (to be raised to 44 bcm/year) from Eastern Siberia to Heilongjiang (NE China).
• Earlier name: Altai Pipeline.

Significance of Pipelines

For Russia: Diversifies exports away from Europe (reduced after Ukraine war sanctions)

• Strengthens Moscow’s leverage in global energy politics.

For China: Secures long-term, affordable pipeline gas supply.

• Reduces reliance on volatile LNG imports.
• Supports transition to cleaner energy (gas > coal).

For Mongolia: Gains strategic importance in Eurasian energy map.

• Earns transit fees.

Global Impact

• Reinforces the Russia–China “no-limits” partnership.
• Alters global energy flows:
  • Weakens Europe’s bargaining power.
  • Reduces LNG demand pressures globally.
• Positions Eurasia as a core hub in the future energy order.

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