"New era of cooperation": China, Russia unveil $55B joint gas pipeline

by John Wesley Reid · Dec 2nd, 2019 12:48 pm

Last Updated Dec 2nd, 2019 at 2:55 pm

Russia and China have struck a $55 billion gas pipeline deal, strengthening what the Wall Street Journal calls "a new era of cooperation." Russia is among the top global fuel exporters and China's growing industries demand the resource.

The "Power of Siberia" measures nearly 1,900 miles and will supply as much as 38 billion cubic meters of gas annually. The $400 billion contract with Gazprom, Russia's largest fuel producer, is the largest contract the company has seen. The agreement will provide northern China with 30 years of service.

Russian President Vladimir Putin praised the deal to Chinese President Xi Jinping saying, "This step is bringing Russian-Chinese strategic cooperation in energy to a whole new level."

Xi called it "a milestone project for the bilateral energy cooperation."