Construction of the Mongolian portion of Russia’s planned new Power of Siberia-2 gas pipeline to China may start in the first quarter or first half of 2024, TASS news agency quoted Russian Deputy Prime Minister Viktoria Abramchenko.

Russia wants to increase pipeline gas supplies to China by 50 billion cubic metres (bcm) per year via Power of Siberia-2, while the existing Power of Siberia pipeline is due to provide 38 bcm a year by 2025.

The highly anticipated deal, which opens a new conduit for Russian natural gas supply into northern China, has been on the drawing board for nearly two decades and could become one of the most significant cross border energy deals signed by a Chinese state oil and gas company in recent years.

In 2023, China’s gas consumption is estimated to reach 385 Bcm to 390 Bcm, according to the China Natural Gas Development Report 2023 published by the National Energy Administration.