Putin Renames Power of Siberia 2 Pipeline as Russia-China Gas Terms Remain Unsettled
A rebrand at Vladivostok signals political momentum on a 50 bcm corridor, but pricing and timeline gaps between Moscow and Beijing have not closed.
Russian President Vladimir Putin renamed the planned "Power of Siberia 2" gas pipeline the "Power of Baikal" on Wednesday (2026-09-02), Russia's Energy Minister Sergei Tsivilev announced from Vladivostok. Tsivilev did not say whether any other elements of the project had changed.5
The rebrand arrives after protracted negotiation with no visible resolution. When Putin met Xi Jinping in Beijing during May (2026-05-19 to 2026-05-20), the two sides described a "general understanding" on the pipeline — language that stops well short of a construction agreement. Key commercial terms and a timetable remained unresolved after that summit, and no subsequent announcement has closed those gaps.4,2
The pipeline — now called Power of Baikal — is designed to carry 50 billion cubic metres of gas per year from Russia's Arctic Yamal fields to China via a 2,600-kilometre route through Mongolia. If built, it would add to the 38 bcm that Power of Siberia 1 delivered to China last year, pushing total Russian pipeline gas exports to China toward 88 bcm annually. That scale would make Russia a dominant supplier in the Chinese gas market rather than a secondary one.5,1
But the commercial gap between the two governments is wide and has resisted resolution for years. China has reportedly sought pricing around $120-130 per thousand cubic metres — in line with Russia's own domestic rates. Moscow wants terms closer to those underpinning Power of Siberia 1, which analysts estimate would more than double that figure. Neither side has publicly moved.2
China's gas import position gives it room to wait. Three Central Asian pipelines from Turkmenistan and Uzbekistan, traversing Kazakhstan into Xinjiang, already supply over 40 bcm annually. The Myanmar-China Gas Pipeline, operational since 2013, was designed to carry 12 bcm per year over its 793-kilometre route. Russia and China are also jointly constructing a separate 10 bcm pipeline from Russia's Pacific island of Sakhalin. China's total pipeline gas imports reached 59.4 million tonnes in 2025, giving Beijing multiple active corridors to play off against Moscow in any pricing negotiation.1
Russia's position is less flexible. Europe's sharp reduction in Russian gas purchases has narrowed Moscow's export options considerably, and the Chinese market represents the most viable large-volume alternative. Power of Siberia 1's capacity is being expanded — Putin and Xi agreed in September (2025-09) to raise it to 44 bcm per year — but that corridor draws from fields in eastern Siberia, separate from the Yamal reserves that would feed the Power of Baikal route. Getting Yamal gas to China requires building the new pipeline or leaving those volumes without a market.1,3
China's 15th five-year plan, released in March, included language committing to advancing "early-stage" work on the Power of Siberia 2 project. That phrase is doing a lot of work. It signals political intent without committing capital or timeline. Chinese planners are experienced at using five-year plan language to maintain optionality on infrastructure they may or may not build.1
The renaming follows a familiar pattern in Russian energy diplomacy: symbolic gestures timed to summits or high-profile political events that keep a project nominally alive without resolving the underlying deal mechanics. Moscow signed a memorandum of understanding to advance construction of the pipeline earlier this year. A legally binding MOU is a step, but steel in the ground requires price terms, off-take agreements, and financing structures that neither government has confirmed are in place.2
JKM, the Asian LNG benchmark, held at $23.61/MMBtu on Wednesday (2026-09-02). At those levels, seaborne LNG remains a credible alternative supply source for Chinese buyers, which reduces Beijing's urgency to settle pipeline pricing on Russian terms. ICE Endex TTF front-month gas traded at €71.96/MWh on Wednesday (2026-09-02), up 3.14% on the session — a move driven by European market dynamics rather than the Vladivostok announcement.5
Until Moscow and Beijing disclose whether they have narrowed the reported gap between $120-130 per thousand cubic metres and the Power of Siberia 1 equivalent rate, the Power of Baikal remains a named ambition rather than a funded project. The price number is the one that matters — not the pipeline's name.2