Gazprom Signs Contract for New Gas Pipeline to China

Gazprom has signed a contract for a new gas pipeline to China via Mongolia. The Soyuz Vostok pipeline is to deliver 50 billion cubic meters of gas per year to China in the event of a supply agreement with China, Bloomberg reports.

If a deal is reached with China, Gazprom could connect to the pipeline system from the West that would deliver gas from the gas field that currently supplies Europe. That, in turn, could lower dependence on European gas buyers and open the way for Asian markets.

“Today, the design contract has been signed, this means that the project has moved to the stage of practical implementation,”

said Gazprom Chief Executive Officer Alexey Miller

The pipeline deal comes days after a deal was agreed with China on new coal supplies that will deliver 100 million tons of coal to China in the coming years. In addition, a new wheat deal was concluded in recent days.

China is Russia’s largest trading partner, and the new agreements underscore the relationship between the two countries. In light of the sanctions imposed by the West, Russia will be looking for other markets for its raw materials. For years, Russia has wanted to focus more on the Asian market.

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