Russia and China Will Discuss Power of Baikal Pipeline
The proposed gas pipeline will be a key topic at the upcoming APEC summit in Shenzhen this November 2026.
Updated on Oct. 14, 2026 in Oil and Gas
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Russian Deputy Prime Minister Alexander Novak will address the Power of Baikal pipeline project with China during the APEC summit in November 2026. This pipeline, formerly known as Power of Siberia 2, aims to transport gas through Mongolia to satisfy Chinese energy demand.
Why it matters
The pipeline is essential for Russia to expand its energy exports and for China to secure reliable fuel supplies as the share of gas in the global energy mix grows. Negotiators aim to finalize the construction framework for this significant infrastructure project in the near future.
The planned gas pipeline will feature a total annual capacity of 50 billion cubic meters of natural gas. This project, which integrates the Soyuz-Vostok transit route through Mongolia, represents a major expansion in regional energy infrastructure.
The players
Alexander Novak
He serves as the Deputy Prime Minister of Russia and oversees energy policy negotiations for the state.
The details
The project, now officially referred to as Power of Baikal, follows a legally binding memorandum signed by Russian and Chinese partners in 2025. Discussions in Shenzhen will focus on advancing the technical and logistical requirements for the pipeline transit through Mongolia.
Timeline
A memorandum for the pipeline construction was signed in 2025.
Talks are scheduled for the APEC summit in November 2026.
Market Landscape
This project continues the trend of integrating energy infrastructure between Russia and China to bypass traditional market constraints. It positions both nations to consolidate their energy interdependence amidst shifting global trade and fuel consumption patterns.
The realization of this pipeline project could lead to greater regional energy security and stabilized pricing for natural gas in the Chinese market. It signals a long-term shift in supply chains that will likely influence industrial operating costs and energy access for businesses across the region.
The takeaway
The formalization of the Power of Baikal pipeline underscores the increasing focus on cross-border energy corridors to meet rising industrial gas needs. Investors and energy analysts should monitor the upcoming APEC summit for definitive markers on project timelines and transit agreements.
Further reading
For broader trends in global energy infrastructure, see our Oil and Gas section.
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