Russia's Gazprom and China's CNPC have signed a new memorandum on strategic cooperation, CEO of the Russian gas holding Alexey Miller told reporters.

 

"Gazprom and CNPC also signed today the new memorandum of strategic cooperation, which reflects a new phase of our work with CNPC on new projects," Miller said according to Tass news agency.

 

The legally binding memorandum on construction of the Power of Siberia 2 gas pipeline was also signed, he said.

 

The "no limits" partnership between China, the world's biggest consumer of energy, and Russia, the world's biggest producer of natural resources, has strengthened since the West imposed sanctions to punish Russia for the war in Ukraine, said Reuters.

 

Since losing a lucrative chunk of the European gas market, Russia has pivoted towards China, and Gazprom has sought an agreement for years on building the Power of Siberia 2 pipeline, capable of delivering 50 billion cubic metres (bcm) per year to China through Mongolia from the Arctic gas fields of Yamal.

 

Miller told Russian news agencies that an agreement had been reached to increase supplies via the existing Power of Siberia pipeline, which runs from Eastern Siberia to China, to 44 billion cubic metres (bcm) a year from 38 bcm.