China included a number of gas pipeline projects with Russia in the draft development plan for the 2026-2030 period announced last week at the annual meeting of the country's highest legislature.
The information sparked debate about whether Siberian Power 2 could be accelerated in construction progress.
Along with 2 other gas pipelines, the draft states that China will "promote preparations for the central line of the China-Russia gas pipeline" in the next 5 years.
Some market observers believe that this content may be related to the Siberia Power 2 project - the Russia-China gas pipeline that is closely monitored and symbolic in bilateral relations. This gas pipeline is also expected to pass through Mongolian territory.
However, some analysts believe that the project completion milestone is still far away, because Beijing and Moscow have not publicly reached an agreement on many important details.
Mr. Aleksei Chigadaev - research expert at the Center for New Eurasian Strategy - said that there are still many issues to be resolved before the Russia - China gas pipeline project can officially start.
This includes determining the participation ratio of the two state-owned energy corporations Gazprom of Russia and China National Petroleum Corporation (CNPC) in the project.
The parties must also clarify who will pay the construction costs and how the price of gas transported through the gas pipeline will be determined.
This is a very long project and requires huge capital, it will take many years to complete" - Mr. Chigadaev said.
The Power of Siberia 2 pipeline is expected to be about 2,600km long and was previously valued at about 13.6 billion USD. This project has been repeatedly delayed since initial discussions began in 2006.
According to the plan, the pipeline has a transport capacity of about 50 billion m3 of gas per year. Siberia Power 2 is considered to be able to strengthen China's energy security, especially in the context of volatile energy markets after the US arrest of Venezuelan President Nicolas Maduro and escalating conflict in Iran.
Mongolian Minister of Industry and Mineral Resources Gongor Damdinnyam met with CNPC representatives during a visit to China in January. The two sides pledged to strengthen cooperation on a Russian gas pipeline project through Mongolia, although the project name was not directly mentioned.
This development took place after the leaders of China, Russia and Mongolia signed a legally binding memorandum of understanding in September last year after the 3-party talks in Beijing.
The agreement includes the construction of the Power of Siberia 2 pipeline to China and Soyuz Vostok - a gas transit pipeline through Mongolia.
Mr. Munkhnaran Bayarlkhagva - former official of the Mongolian National Security Council - said that negotiations on the pipeline section passing through Mongolia will not be separate from the overall progress of the entire Siberian Power 2 project.
What we don't know is the gas price. However, if the Chinese side is preparing to participate in the basic work of the project, it can be understood that "ice has melted", and the parties are getting closer to a final agreement" - he said.
