World

Russia-China gas pipeline begins construction in 2024, EU signs supply agreement with Azerbaijan – report

Russian President Vladimir Putin along with Chinese President Xi Jinping.

  • A pipeline bringing gas from Russia to China will break ground in 2024, the Financial Times reports.
  • The Power of Siberia 2 pipeline will allow gas to flow through to China via territory in Mongolia.
  • Meanwhile, the EU signed a new gas agreement with Azerbaijan on Monday.
  • Visit Business Insider for more stories.

A gas pipeline between Russia and China will break ground within the next two years It informs the Financial Times on Mondayas the two allies deepen their economic and energy ties.

Mongolian Prime Minister Oyun-Erdene Luvsannamsrai told the FT that construction should begin in 2024, despite Russia’s invasion of Ukraine limiting some of the plans for the Power of Siberia 2 pipeline.

The pipeline will run 2,600 kilometers and is expected to start operating in 2030. Mongolia will also benefit from transit charges and taxes to help an ailing economy hit hard by the coronavirus pandemic.

Russia’s gas exports to China have increased since 2019, but strengthened flows are crucial for Moscow as Europe moves further away from being dependent on its supplies.

The former Power of Siberia pipeline was previously a central source of flows to Europe, but the Siberian fields will now redirect gas to China.

The news comes when the EU on Monday signed a new gas agreement with Azerbaijan to double imports of natural gas by 2027 to at least 20 billion cubic meters.

“Today, with this new Memorandum of Understanding, we are opening a new chapter in our energy cooperation with Azerbaijan, a key partner in our efforts to move away from Russian fossil fuels,” said European Commission President Ursula von der Leyen.

Get the best out of our site email to you every weekday.

Go to Business Insiders front page for more stories.

Russia-China gas pipeline begins construction in 2024, EU signs supply agreement with Azerbaijan – report

Source link Russia-China gas pipeline begins construction in 2024, EU signs supply agreement with Azerbaijan – report

Back to top button