(Opinion) Bad news for the European Commission (EC). To replace the money lost by the non-start of Nord Stream 2, Russia is building a “stream” to China.
‘Power of Siberia 2’ is expected to work by 2024.
With cheap Russian gas, China is likely to leave the EU behind. China will be able to launch its factories at full capacity, with lower costs and higher profits.
The lack of gas in Europe means that metallurgy, heavy industry, steel, chemicals, tableware manufacturing, and many other energy-intensive industries will no longer be able to operate at competitive prices in Europe.
They will migrate to countries with cheap and abundant energy. The first warning signs from the steel industry have already been sent.
BY 2024
Work on the ‘Power of Siberia 2’ project is scheduled to begin in 2024.
Gas sales along this route will replace the revenue that has not yet arrived from the planned Nord Stream 2 deliveries to Europe.
It turns out that the ‘Power of Siberia-2’ gas pipeline has been discussed between Moscow and Beijing for several years.
The project came to life after the commissioning of Nord Stream 2 was halted due to the onset of conflict in Ukraine, Russian Energy Minister Alexander Novak said Thursday.
Speaking on the ‘Russia-1’ television channel, he said that ‘Power of Siberia 2’ could become a de facto substitute for Russia’s revenues from ‘Nord Stream 2’.
Earlier, the minister, who is visiting Uzbekistan, said that Russia and China would soon sign agreements on supplying 50 billion cubic meters of gas per year through the future gas pipeline.
This volume is almost equal to the maximum capacity of Nord Stream 1 (55 billion cubic meters), which has been shut down since September 2.
A third of Russian gas supplies to the European Union will pass through this strategic gas pipeline connecting Russia with Germany.
‘Power of Siberia-2’ will supply gas to the energy-hungry Chinese economy.
Part of the gas pipeline will run through the territory of Mongolia.
Construction is scheduled to begin in 2024. Meanwhile, Russian gas supplies to the European Union “will decrease by about 50 billion cubic meters in 2022,” Mr. Novak added.
On the other hand, Gazprom’s gas supplies to China will increase by 20 billion cubic meters each year.
This addition will be channeled through the existing ‘Power of Siberia-1’ gas pipeline at the expense of gas from the Khayandinskoye field in Yakutia, in northeastern Siberia.
This article was produced by The Rio Times’ automated AI newsroom. Editorial responsibility: Matthias Camenzind, Publisher and Editor-in-Chief. How we use AI · Report an error
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