The Power of Siberia 2 Project and Central Asia’s Gas Bargaining Power
The proposed Power of Siberia 2 (PoS-2) pipeline from Russia to China has re-entered the headlines on the strength of a new memorandum between Gazprom and CNPC. Russia calls the memorandum “legally binding,” but China has avoided the phrase, because the only thing that is legally binding is an agreement to negotiate. The memorandum affirms a design capacity up to 50 billion cubic meters per year (bcm/y), a route via Mongolia, and a total trunk length of roughly 2,600 kilometers (km) on the Russian side before crossing Mongolian territory. Feasibility work has highlighted a 1,420-millimeter (56-inch) pipe diameter, and an indicative cost cited in some trade reporting near $13–14 billion. The political signaling is strong, but pricing terms remain unresolved. For Central Asia, the significance is immediate: even without a final sales contract, the expectation of future Russian volumes tightens China’s negotiating posture with Turkmenistan, Kazakhstan, and Uzbekistan, the three states already connected to China by the Central Asia–China Gas Pipeline (CAGP). Central Asia's Gas Supplies to China China’s westbound import corridor from Central Asia consists today of three parallel pipelines that together provide a nominal capacity of 55 bcm/y (Lines “A” and “B” at 15 bcm/y each, and Line “C” at 25 bcm/y). Construction of the first two lines began in 2008, with operations starting in 2009–2010; Line C entered service in 2014. Line D, planned at 30 bcm/y through Uzbekistan–Tajikistan–Kyrgyzstan to China, has been delayed for years; if completed, it would raise corridor capacity toward 85 bcm/y. Turkmenistan is the anchor supplier. The Oxford Institute for Energy Studies (OIES) estimates its deliveries to China at 32.9 bcm in 2022 (roughly 81% of the country’s gas exports that year), with long-term sales structured on formulas linked to the price of oil. Interfax reports that in the second quarter of 2025, the price for Turkmenistan’s gas fell below $290 per thousand cubic meters (mcm). This figure is consistent with oil-price linkage rather than hub-indexed European benchmarks. Recent industry and regional reporting puts Turkmenistan’s deliveries averaging approximately 35 bcm/y in the mid-2020s. Kazakhstan had committed to supply up to 10 bcm/y, but domestic constraints have kept actual flows lower. S&P Global cites 4.4 bcm in 2022 and 5.86 bcm in 2023, with winter interruptions to protect domestic consumers; of the 29.8 bcm of commercial gas produced in 2023, 19.4 bcm was consumed at home. Uzbekistan’s volumes have been more variable as Tashkent balances domestic demand, imports, and swap operations. Jamestown noted a fall in Uzbek gas export value to China from $1.07 billion in 2022 to $563.5 million in 2023, before a rebound in 2024 and 2025 according to Chinese customs-based press summaries. PoS-2’s Route, Mongolian Gatekeeping, and Central Asian Implications The geography of the route matters for Central Asia. On the Russian side, public summaries describe a corridor from Yamal via Urengoy through Krasnoyarsk and Irkutsk, then across Buryatia toward Kyakhta near the Mongolian border. In Mongolia, official communications stress underground installation across the steppes and local economic benefits, but final...
