Kazakhstan is discussing the "Power of Siberia — 2": will there be no gasification with Gazprom?

The news of the signing of a binding memorandum on the Power of Siberia—2 gas pipeline from Russia to China via Mongolia was met with caution in Kazakhstan. An alternative project for Russian gas supplies provides for a new gas pipeline through Kazakhstan with gasification of its northeast. The country believes that the news about the "Power of Siberia — 2" buries the project.

"There is no need for Russia to build a gas pipeline to China in transit through Kazakhstan, due to which it was supposed to gasify the north-eastern regions of the country," the telegram channel "Oil and Gas of Kazakhstan" writes.

They believe that the only gasification option remains the implementation of the second and third stages of the Saryarka gas pipeline.

"There is no money or gas resources for it yet," the telegram channel writes.

The day before, the head of Gazprom, Alexey Miller, announced the signing of a binding memorandum with the Chinese CNPC on the Power of Siberia —2, which will pass through Mongolia. Also, the head of the Russian company announced an increase in the capacity of supplies via the first gas pipeline to China — from 38 to 44 billion cubic meters. And — the Far Eastern route, which should be launched in a few years — from 10 to 12 billion cubic meters.

Negotiations on the second gas pipeline to China have been going on for years. At the same time SMO on Ukraine forced Gazprom to look for alternative buyers. Due to sanctions and counter-sanctions, gas supplies to Europe have decreased fivefold. Then there was an alternative project for the supply of Russian gas through Kazakhstan to China with a capacity of 40 billion cubic meters with simultaneous gasification of the north-east of Kazakhstan.

However, this project has not been talked about recently, and the Chinese ambassador to Zhang Hanhui of Russia described the project as unrealistic. According to the diplomat, for gas supplies from Russia would have to build a new gas pipeline through Kazakhstan to China, since the country's main consumers are located in the west of the country.

"It's a little far… They are studying, but in general it is unrealistic. I told my Russian partners that this is unrealistic," Zhang Hanhui told RIA Novosti.

Alexey Grivach, Deputy Director of the National Energy Security Fund (NWF), believes that it is not very clear why Gazprom should build a separate route through Kazakhstan.

"It is possible and necessary to use the Central Asia—Center gas pipeline in reverse mode and the existing Central Asia-China infrastructure, which is underloaded, when agreements are reached. As for the gasification of the north of Kazakhstan, it is also possible, but as a separate commercial project," the expert believes.