Russia is expanding its natural gas pipeline network into China, a move that could challenge America’s growing business of shipping liquefied natural gas.
Russian energy company Gazprom said on Tuesday that Russia had signed a binding deal to build a pipeline from Russia to China through Mongolia. The pipeline, known as Power of Siberia 2, would be able to transport as much as 50 billion cubic meters of gas a year. The first Power of Siberia pipeline, from Siberia to China, transports about 38 bcm a year and could be increased to 44 bcm.
Together, the pipelines create competition for exporters of liquefied natural gas, who today send about 600 bcm a year around the world.
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