PETROCHINA(SH:601857) Guan Cha Zhe Wang·2025-09-03 01:34Core Viewpoint - The signing of the memorandum for the "Power of Siberia-2" gas pipeline between Russia and China marks a significant shift in energy geopolitics, indicating China's growing influence and its disregard for Western pressures to limit cooperation with Russia [1][2]. Group 1: Project Details - The "Power of Siberia-2" pipeline will transport up to 50 billion cubic meters of gas annually from Russia to China via Mongolia for a duration of 30 years [1]. - The project is seen as a potential replacement for the "Nord Stream 2" pipeline, which has been sidelined due to geopolitical tensions [2]. - The pipeline's construction has faced delays primarily due to unresolved issues regarding gas pricing and pipeline routing between Russia and China [6]. Group 2: Economic Implications - Russia is shifting its energy export focus towards China following the loss of the European gas market, which was previously a high-profit segment [2]. - The energy trade between China and Russia constitutes over one-third of their total trade volume, with Russia being China's largest source of crude oil and natural gas imports [4]. - The agreement to increase the annual gas supply through the existing "Power of Siberia" pipeline from 38 billion cubic meters to 44 billion cubic meters reflects the strengthening of energy ties between the two nations [7]. Group 3: Political Context - The cooperation between Russia, China, and Mongolia is supported by political agreements, with the leaders of the three countries agreeing to extend the economic corridor planning until 2031 [8]. - The recent agreements signed during the meeting of the three nations indicate a formal transition from political negotiations to commercial execution of the pipeline project [8].