Reuters reported China’s desire to exchange Power of Siberia-2 for Turkmen Line D

China may delay the construction of the Power of Siberia-2 gas pipeline, giving preference to the Central Asian pipeline project for gas supplies from Turkmenistan, reports Reuters citing own sources. The readiness of the PRC to delay the construction of the “Force of Siberia-2” is also confirmed by the sources of the Financial Times.

Instead of the 50 billion cubic meter Power of Siberia-2 project, which Russia has been promoting for more than 7 years, China has decided to give priority to a new gas pipeline from Turkmenistan, according to Reuters sources from among high-ranking Chinese officials and representatives of the country’s oil and gas industry. Although Turkmen gas costs China 30% more than Russian gas, and negotiations on a discount with Ashgabat failed, Beijing gave the green light to the Line D project, which will import 30 billion cubic meters from Turkmenistan annually.

“Central Asian pipelines are considered a key investment in China’s energy and geopolitical space. It is a supply chain with strategic value that transcends commercial aspects,” an unnamed Chinese official told Reuters.

British newspaper the day before Financial Times (FT) also said that China will drag out negotiations on the construction of the Power of Siberia-2 pipeline, which will ensure the supply of Russian gas through Mongolia. According to the FT, Prime Minister Mikhail Mishustin’s recent visit to China did not lead to the signing of a document in which Beijing would make clear commitments regarding this gas pipeline. Experts interviewed by the FT note that China is in no hurry to implement the project due to the delay in Russia’s military operation in Ukraine.

Alexander Kislov