More gas from Russia? China flags new pipeline links amid Iran energy crisis

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China's draft five-year plan includes two pipelines for Russian natural gas, potentially accelerating the Power of Siberia 2 project, a key symbol of Sino-Russian relations. The plan mentions advancing preparatory work on a "central route" pipeline, interpreted by some as Power of Siberia 2, which would pass through Mongolia. However, analysts note that disagreements between Gazprom and CNPC regarding project stakes, financing, and gas pricing remain unresolved. Despite China's inclusion of the pipelines in its development blueprint for 2026-2030, the project faces significant hurdles and a completion date remains uncertain due to the complexities of the capital-intensive, multi-year undertaking.
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AI-ExtractedChina will “advance preparatory work for the central route of the China-Russia natural gas pipeline” in the next five years.
China included two pipelines transporting natural gas from Russia in the draft of its new five-year plan.
Questions remained over who would pay for the construction and what price would be agreed for the gas.
The exact stakes of Russia’s Gazprom and China National Petroleum Corporation (CNPC) need resolving.
Several issues needed resolving before work on the whole pipeline could kick off.
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