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    Gazprom, Mongolia Agree Study for Chinese Pipe


Gazprom and the Mongolian government plan to set up a company to undertake the study.

by: Joseph Murphy

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Gazprom, Mongolia Agree Study for Chinese Pipe

Russia's Gazprom has agreed a memorandum of intent with the Mongolian government to form a company to develop a feasibility study on building and operating a pipeline to China, it said on August 25.

The document was signed during a meeting via video conference between Gazprom CEO Alexey Miller and Mongolian deputy prime minister Yangugiin Sodbaatar.

The Power of Siberia 2 is expected to run for 1,942 km, carrying up to 50bn m3/yr of gas from the Russian Arctic through Mongolia to China. This would add to supplies via the 38bn m3/yr Power of Siberia 1 pipeline, which began pumping eastern Siberian gas to China in December.

Gazprom is yet to agree on a gas supply contract with China to underpin Power of Siberia 2's construction. The original Power of Siberia was under discussion for over a decade before a supply deal was finally signed in 2014.