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Report: Russia’s Planned Gas Pipeline to China Faces Construction Delay

A man smokes a cigarette on a frozen river in Beijing on January 28, 2024. (Photo by Pedro PARDO / AFP)
A man smokes a cigarette on a frozen river in Beijing on January 28, 2024. (Photo by Pedro PARDO / AFP)
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Report: Russia’s Planned Gas Pipeline to China Faces Construction Delay

A man smokes a cigarette on a frozen river in Beijing on January 28, 2024. (Photo by Pedro PARDO / AFP)
A man smokes a cigarette on a frozen river in Beijing on January 28, 2024. (Photo by Pedro PARDO / AFP)

Mongolian Prime Minister L. Oyun-Erdene said construction of Russia's planned new Power of Siberia-2 gas pipeline to China, which was expected to start this year, may be delayed, the Financial Times reported on Sunday.
Russia has been in talks to build a new pipeline to carry 50 billion cubic meters of gas a year from northern Russia to China via Mongolia, almost as much as the now-idle Nord Stream 1 pipeline under the Baltic Sea that was damaged in 2022, Reuters said.
China and Russia have yet to agree on key details of the mammoth project, the PM told the paper, adding that record global gas prices during the past two years had complicated talks.
Gazprom, which will operate Power of Siberia-2 has said it aims to start delivering gas by 2030. But agreement on key issues, including pricing remains elusive.
"Those two sides still need more time to do more detailed research on the economic studies," Oyun-Erdene told the FT. "The Chinese and Russian sides are still doing the calculations and estimations and they are working on the economic benefits," he said.
Russia is ramping up supplies to China to compensate for the loss of much of its gas sales in Europe since its invasion of Ukraine nearly two years ago, which prompted Western states to slap sanctions on Moscow and trim reliance on Russian energy.
Russian Deputy Prime Minister Viktoria Abramchenko told state news agency TASS last year that building of the Mongolian part of Russian gas link to China may start in the first quarter or first half of 2024.

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Oil Extends Slide as Trump Indicates Possible Iran Peace Deal

A crude oil tanker unloads at the oil terminal of the port in Qingdao, in China's eastern Shandong province on April 28, 2026. (Photo by CN-STR / AFP) / China OUT
A crude oil tanker unloads at the oil terminal of the port in Qingdao, in China's eastern Shandong province on April 28, 2026. (Photo by CN-STR / AFP) / China OUT
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Oil Extends Slide as Trump Indicates Possible Iran Peace Deal

A crude oil tanker unloads at the oil terminal of the port in Qingdao, in China's eastern Shandong province on April 28, 2026. (Photo by CN-STR / AFP) / China OUT
A crude oil tanker unloads at the oil terminal of the port in Qingdao, in China's eastern Shandong province on April 28, 2026. (Photo by CN-STR / AFP) / China OUT

Oil prices fell for a second day on Wednesday on expectations bottled-up supply from the key Middle East producing region could resume flowing after US President Donald Trump indicated a possible peace deal may be reached to end the war with Iran.

Brent crude futures fell $1.89, or 1.7%, to $107.98 a barrel as of 0340 GMT, after dropping 4% in the previous session. US West Texas Intermediate futures eased $1.83, or 1.8%, to $100.44, after settling down 3.9% the day before.

On Tuesday, Trump unexpectedly said he would briefly pause an operation to help escort ships through the Strait of Hormuz, citing ‌progress toward ‌a comprehensive agreement with Iran, without giving details on the ‌agreement. ⁠There was no ⁠immediate reaction from Tehran.

"This signals potential de-escalation and raises hopes for the release of stranded vessels inside the Gulf, which could gradually bring supply back to the market," said Anh Pham, senior research specialist for oil at LSEG.

Pham added that prices remain elevated with both Brent and WTI staying above $100 per barrel as prospects for a peace deal remain uncertain, while it will take time ⁠for trade flows to be fully restored even if a ‌deal is reached.

Trump said the US Navy ‌would continue its blockade of Iranian ports. The supply loss to the global ‌market has pushed prices higher with Brent trading last week at its ‌highest since March 2022.

"We have mutually agreed that, while the Blockade will remain in full force and effect, Project Freedom ... will be paused for a short period of time to see whether or not the Agreement can be finalized and signed," Trump wrote ‌on social media.

Trump's announcement came only hours after US Secretary of State Marco Rubio briefed reporters on the effort, ⁠announced on Sunday, to ⁠escort stranded tankers through the strait.

On Monday, the US military said it had destroyed several Iranian small boats, as well as cruise missiles and drones, while guiding two vessels out of the Gulf through the strait. The Strait of Hormuz closure has drawn down global inventories as refineries try to make up the production shortfall.

US crude oil inventories fell for a third week, while gasoline and distillate stocks also declined, market sources said on Tuesday, citing American Petroleum Institute figures.

Crude stocks fell by 8.1 million barrels in the week ended May 1, the sources said. Gasoline inventories fell by 6.1 million barrels, while distillate inventories fell by 4.6 million barrels compared to a week earlier, the sources said.

Business

Russia’s LNG Exports up 8.6% in January to April, Data Shows

A general view of the liquefied natural gas plant operated by Sakhalin Energy at Prigorodnoye on the Pacific island of Sakhalin, Russia July 15, 2021. (Reuters)
A general view of the liquefied natural gas plant operated by Sakhalin Energy at Prigorodnoye on the Pacific island of Sakhalin, Russia July 15, 2021. (Reuters)
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Russia’s LNG Exports up 8.6% in January to April, Data Shows

A general view of the liquefied natural gas plant operated by Sakhalin Energy at Prigorodnoye on the Pacific island of Sakhalin, Russia July 15, 2021. (Reuters)
A general view of the liquefied natural gas plant operated by Sakhalin Energy at Prigorodnoye on the Pacific island of Sakhalin, Russia July 15, 2021. (Reuters)

Russia's ‌exports of liquefied natural gas rose 8.6% in January to April to 11.4 million metric tons from the same period last year due to supplies from the Arctic LNG 2 project, which reached 1 million tons in the first four months of the year, preliminary LSEG data ‌showed on Tuesday.

US ‌sanctions against Moscow over ‌the ⁠Ukraine conflict have restrained ⁠Russian LNG exports, particularly from the Arctic LNG 2 plant, where operations have been hindered owing to difficulty securing buyers.

In April alone, total Russian exports of LNG rose ⁠13.2% from a year ago to ‌2.92 million ‌tons.

Data also showed that Russian LNG ‌exports to Europe in January to April ‌jumped 20.8% year-on-year to 6.4 million tons. In April, they rose to around 1.6 million tons from 1.2 million tons ‌a year earlier.

In January, EU countries gave their final ⁠approval ⁠to ban Russian gas imports by late-2027.

Total exports from Novatek's Yamal LNG plant in the January to April period fell by 1.5% year-on-year to 6.5 million tons.

Asia-oriented Sakhalin-2, controlled by Gazprom, exported 3.7 million tons in the first four months of the year, up from 3.6 million tons during the same period last year.

Business

G7 Trade Ministers Set to Meet but Not Discuss Latest US Tariff Threat

Discussion of the repercussions of the Middle East war is expected to dominate an informal session on Tuesday. Ludovic MARIN / AFP/File
Discussion of the repercussions of the Middle East war is expected to dominate an informal session on Tuesday. Ludovic MARIN / AFP/File
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G7 Trade Ministers Set to Meet but Not Discuss Latest US Tariff Threat

Discussion of the repercussions of the Middle East war is expected to dominate an informal session on Tuesday. Ludovic MARIN / AFP/File
Discussion of the repercussions of the Middle East war is expected to dominate an informal session on Tuesday. Ludovic MARIN / AFP/File

G7 trade ministers are set to meet in Paris on Tuesday and Wednesday to discuss issues such as critical minerals and small packages but will not directly address the latest US threat to impose additional tariffs on European vehicles.

The second meeting of trade ministers under the French G7 presidency is taking place as the global economy has been upended by the closure of the Strait of Hormuz, through which a fifth of the world's oil normally flows, said AFP.

Discussion of the repercussions of the Middle East war is expected to dominate an informal session on Tuesday, according to the office of France's junior trade minister Nicolas Forissier.

Meanwhile President Donald Trump's threat last Friday that he will hike US tariffs on cars and trucks from the European Union will likely be addressed separately.

US Trade Representative Jamieson Greer is expected to meet with EU Trade Commission Maros Sefcovic in the French capital.

They also have a meeting scheduled with Forissier and French Economy Minister Roland Lescure.

The US and EU struck a deal last summer to cap US tariffs on EU autos and parts at 15 percent, which is lower than the 25-percent duty that Trump imposed on many other trading partners.

In late March, EU lawmakers gave their green light to the bloc's tariff deal with Trump, but with conditions. It must still be approved by member countries.

"Our position for the moment is not to overreact," said Forissier's office.

"We will discuss it among Europeans when the time comes, but in any case not within the framework of the G7," it added.

"This agreement is useful and we must continue to implement it."

- Four priorities -

On Wednesday the trade ministers of the G7 nations (Britain, Canada, France, Germany, Italy, Japan and the United States) are expected to discuss the four priorities set by the group's French presidency.

The first is find a collective and effective response to industrial overcapacity that undermines free trade.

Even if the discussion doesn't formally target China, the country's subsidizing of certain sectors has created trade tensions for years.

A second priority is economic security, in particular securing and diversifying supplies of critical minerals that are indispensable in producing strategic products such as computer chips, electric vehicle batteries and super magnets.

France favors creating a system of groups of producing, processing and consuming nations that share a commitment to implementing good practices.

- Small parcels, big problem -

The ministers will also touch on the failure in March of the latest round of World Trade Organization negotiations, with the body's role as a trade referee having been paralyzed by the United States for years.

"The goal is for this organization to be better suited to current challenges," Forissier's office said.

The ministers will also discuss cross-border sales via e-commerce sites which have generated huge volumes of small parcels that escaped customs duties and posed unfair competition to local retailers.

The US last year suspended the tariff exemption on small parcels valued at less than $800 and the EU will this summer put in place a flat-rate customs duty on packages valued at under 150 euros.

The summit of G7 heads of state and government is scheduled for June 15 to 17 in the eastern town Evian along the shore of Lake Geneva.