Russia's pipeline project across Mongolia is picking up steam
As the Nord Stream 2 project in Europe loses steam, Russian gas giant Gazprom has registered a company in Mongolia called Gazoprovod Soyuz Vostok (which in English means Gas Pipeline Union East). The company will do the local fieldwork for a proposed gas pipeline across Mongolia – the Power of Siberia 2.
The proposed pipeline aims to connect Siberian gas fields to consumers in northern China. For Russia, it could export 1.3 times as much gas as the existing Power of Siberia line and offset the potential loss of export volumes as Europe moves to renewable energy. For Mongolia, the pipeline has been advertised as a windfall of transit fees and an opportunity to use gas to reduce coal use and air pollution in Ulaanbaatar.
If Gazprom’s fieldwork reports positive results on schedule, it would also be a win for former Prime Minister Khurelsukh (who has personally pushed the pipeline) in the lead-up to June’s presidential election.