Russia and China Sign Major Deal for New Gas Pipeline

Russia’s Gazprom PJSC said it signed a legally binding agreement to build the long-anticipated Power of Siberia 2 gas pipeline to China via Mongolia and would expand deliveries through other routes, in what will be seen by the Kremlin as a major political win.

In comments made to Russian wires from Beijing, Chief Executive Officer Alexey Miller said the gas producer could ship as much as 50 billion cubic meters a year via the Power of Siberia 2 for 30 years. Miller said the price for the fuel will be lower than what Gazprom currently charges customers in Europe, according to the reports.