Russia supplies China gas at 56 percent discount, budget docs show

Power of Siberia Pipeline Delivers Gas to China at 56 Percent Discount

Russia will supply natural gas to China through the Power of Siberia pipeline at an average price of $247.9 per thousand cubic meters this year, granting a 56 percent discount compared to what other international clients pay, news.bg reported. State budget documents cited by The Moscow Times show that while Gazprom charges other foreign customers an average of $562 for the same volume, the price gap reaches $315 per thousand cubic meters. This represents a 15 percent increase in the discount compared to last year, when China bought pipeline gas at $240.3 while other international buyers paid $406.5.

Budget Projections Show Discounted Gas Sales Through 2029

Russia projects a price of $251.3 per thousand cubic meters for China in the upcoming year, compared to $450 for other export destinations, maintaining a 46 percent discount. Ministry of Economic Development forecasts point to a reduction of the discount to 32 percent by 2028, with prices averaging $247.8 for Beijing against $361.9 for other markets. By 2029, the price gap is expected to narrow further to 24 percent, with Chinese buyers paying $246.4 while other international clients are billed $323.2.

Pipeline Economics Favor Central Asian Suppliers Over Gazprom

Citing Chinese customs data, Vakulenko calculated that Beijing pays $40 to $60 more per thousand cubic meters for Turkmen gas. That pricing covers transport costs across an 1,800-kilometer pipeline crossing Uzbekistan and Kazakhstan to the Chinese border. Turkmen gas arrives in western China roughly 3,000 kilometers away from Beijing, whereas Russian supplies cross the border near Heihe in the northeast, much closer to major consumption centers.

Chinese Imports Fail to Replace European Exports

Deliveries via the Power of Siberia pipeline reached 39.4 billion cubic meters, with volumes expected to climb to 40.5 billion cubic meters. Despite these growing shipments, the Chinese market currently compensates Gazprom for only a fraction of its former European Union exports, which peaked at nearly 200 billion cubic meters annually before trade relations deteriorated.

Why Russian Gas Is Cheaper for China?

Why is Russian gas cheaper for China than for other international buyers?

Budget documents show the resulting discount has grown from 41 percent last year to 56 percent.

How much gas does Russia send to China through the Power of Siberia pipeline?

Pipeline deliveries reached 39.4 billion cubic meters, and state projections anticipate volume to rise to 40.5 billion cubic meters.

China Domestic Gas Production Stops Growing

During the first half of 2026, domestic production of natural gas in China remained at the level of the previous year without registering an increase, breaking two decades of continuous growth. From 2010 to 2024, the consumption of natural gas in China increased fourfold from 107 billion to 428 billion cubic meters, with a compound annual growth rate exceeding 10.4 percent. Over the same period, domestic production expanded 2.6 times from 95 billion to 246 billion cubic meters, achieving an average annual growth rate of 7 percent. The divergence between consumption and production was particularly notable from 2017 to 2021 during the state campaign to combat clean air, when millions of coal-heating units were administratively switched to natural gas, pushing consumption up by 13 to 18 percent annually while production grew by 7 to 9 percent. Fulfilling the remaining 40 percent of demand, amounting to approximately 180 to 200 billion cubic meters annually, requires balancing pipeline imports and liquefied natural gas supplies.

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