How a New Russia-China Gas Pipeline Could Reshape Global LNG Trade

Russia and China appear to be moving forward with a major natural gas pipeline between their countries after years of stalled negotiations. Russian energy giant Gazprom PJSC said it has signed a legally binding memorandum with China National Petroleum Corp. to build the Power of Siberia 2 pipeline.

China has yet to confirm the agreement was struck and key issues such as financing, pricing and the volume of gas that will be sold remain unresolved. But if the conduit from Russia’s Arctic Yamal Peninsula to northeast China goes ahead, it would deepen the economic ties between the two neighbors, who have already been growing closer in recent years as Russia grapples with Western sanctions.