Mongolia Eyes Transit Gains as Power of Siberia 2 Moves Forward

The agreement to advance the Power of Siberia 2 gas pipeline, announced at a trilateral summit in Beijing on September 2, is the most concrete step yet in a project long stuck in limbo. Russia, China and Mongolia pledged to move ahead with construction of the line that would carry up to 50 billion cubic meters of gas annually from western Siberia through Mongolia into northern China.

For Russia, the plan is a lifeline. Since the loss of its European market, Moscow has been pressing to reorient its energy exports eastward. For China, the appeal lies in secure overland supplies that reduce reliance on liquefied natural gas from the United States, Qatar and Australia. Mongolia stands to gain from transit fees, alternative energy supplies that could ease Ulaanbaatar’s winter smog, and the prestige of serving as a corridor linking Russia and China.

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