News Digest (www.upstreamonline.com)
Russia-China Agreement on Sila Sibiri 2 Pipeline
Russia has reached a general understanding with China on the Sila Sibiri 2 gas pipeline project, according to Russian media. Kremlin spokesman Dmitry Peskov stated that President Vladimir Putin raised the project during talks with China’s President Xi Jinping in Beijing, resulting in a "shared understanding of the project’s main parameters." Peskov confirmed agreement on the pipeline's route and construction method, though some details remain to be finalized. However, no timetable for implementation was provided. As of publication, China has not disclosed any details of the project.
China's Official Stance and Cooperation Context
China's foreign ministry spokesperson responded to questions on the pipeline's progress by stating that "China and Russia engage in close cooperation in many fields, including energy" and that China is ready to deepen practical cooperation based on mutual respect and mutual benefit. While multiple cooperation documents were signed during the Putin-Xi talks, none directly related to the Sila Sibiri 2 pipeline, according to a list released by Chinese state media Xinhua. Putin arrived in Beijing on Tuesday for a two-day state visit, and the two leaders signed a pact on deepening strategic cooperation.
Previous Agreements and Public Indications
In September 2025, Russian state-controlled gas giant Gazprom signed a "legally binding memorandum" with China National Petroleum Corporation (CNPC) covering the construction of the Sila Sibiri 2 pipeline and its Soyuz-Vostok transit segment across Mongolia. The only public indication from China on advancing the project came in March, when the government stated in its 15th Five-Year Plan that it would push forward the pipeline's "preliminary work." The Sila Sibiri 2 pipeline is expected to carry 50 billion cubic metres of gas per annum to China, according to Gazprom.
Existing Gas Supply and Future Plans
Gazprom has been supplying gas to China via Sila Sibiri 1 at the full contracted rate since December 2024, and reached an agreement with CNPC to increase annual gas exports from 38 Bcma to 44 Bcma. Both companies also agreed to increase future gas supplies via the Sila Sibiri 3 pipeline—currently under construction—from 10 Bcma to 12 Bcma, with commissioning expected in 2027. Putin stressed that Russia remains a reliable supplier of energy resources to China, ready to ensure uninterrupted supplies to the rapidly growing Chinese market. Xi called for strengthening cooperation in all areas including energy but did not elaborate further.
Oil Imports and Broader Energy Context
Separately, Russian Deputy Prime Minister Alexander Novak stated that China is interested in increasing oil imports from Russia, with Russia ready to provide long-term supplies and increase volumes. During US President Trump's visit to Beijing earlier this month, China expressed interest in purchasing more US oil to reduce its dependence on the Strait of Hormuz in the future, according to the White House.
21 May 2026
This material is an AI-assisted summary based on publicly available sources and may contain inaccuracies. For the original and full details, please refer to the source link. Based on materials by Sharon Foo. All rights to the original text and images remain with their respective rights holders.