China is rethinking its Russian pipeline plans

Friends in war, Russia and China appear to be enemies when it comes to energy. As a result, Turkmenistan could be the main beneficiary of Beijing’s need for more natural gas.

Just a few months ago, Russian and Chinese officials were saying a deal to build a new gas pipeline linking the two countries, dubbed Power of Siberia 2, was imminent. Now, it seems those plans have been put on hold. A recent decision by the government of Mongolia not to include funding for the construction of the pipeline in a five-year economic plan is widely seen as an indicator that China is rethinking the pipeline project, South China Morning Post. reported.

Power of Siberia 2 is expected to transport up to 50 billion cubic meters of gas annually from western Siberia to China via Mongolia. His operation would provide much-needed revenue to Russia, which is struggling to afford its war in Ukraine. China has proven to be a major supporter of Russia, helping the Kremlin overcoming sanctions imposed by the West. But the hold on the Power of Siberia 2 project suggests that Beijing’s friendship has limits, despite the famous proclamation by Chinese leader Xi Jinping and his Russian counterpart Vladimir Putin that bilateral relations it had no “limit”.

While China keeps Russia on the hook for energy cooperation, it is tightening ties with Turkmenistan. A cohort of Turkmen students, for example, spent the summer taking a training course at Beijing University of Petroleum, Turkmenportal website reported.

RFE/RL quoted regional expert Alexey Chigadayev as saying that a new pipeline connecting China and Turkmenistan makes more sense for Beijing. First, China would maintain a much greater degree of control over such a pipeline during both the construction and operational phases. “Negotiation with the political leadership of Turkmenistan is also easier – it has an even higher level of authoritarianism than Russia and a simpler economy,” Chigadayev told RFE/RL.

To date, in 2024, Turkmenistan surpasses Russia in supplying gas to China, in terms of revenue. A report published by an Uzbek news channel, Spot.uz, said Turkmenistan was China’s top gas supplier in January-July, exporting $5.67 billion in gas. Russia took second place with sales of $4.69 billion. Kazakhstan also supplied China with gas worth more than $730 million during this period.

Of Eurasianet.org

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