Global Energy Shock from the Iran War Revives Power of Siberia 2 through Mongolia

For years the proposed Power of Siberia 2 pipeline drifted through feasibility studies and price disputes between Moscow and Beijing.

Now it sits squarely inside China’s newly unveiled 2026–2030 development plan, a sign that the project may have moved from talking point to strategic reality.

This follows the memorandum signed in September 2025 to advance the project.

This shift seems to partially owe to geopolitics and the ongoing Iran war, which has disrupted global energy markets and exposed China’s dependence on seaborne imports from the Middle East.

Tanker routes through the Strait of Hormuz—one of the world’s most critical energy chokepoints—have become increasingly uncertain, pushing policymakers in Beijing to prioritize overland supply routes immune to maritime blockades.

That urgency has revived the long-discussed pipeline linking Russia’s gas fields to northern China via Mongolia. Designed to carry roughly 50 billion cubic meters of gas annually, the line would rival the capacity of the defunct Nord Stream system that once connected Russia to Europe.

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