Gazprom Paves Way to New China Gas Deal as Sanctions Hit Russia

The Gazprom PJSC Slavyanskaya compressor station, starting point of the Nord Stream 2 gas pipeline, in Ust-Luga, Russia. Photo: Bloomberg

(Bloomberg) — Gazprom PJSC took a new step toward potentially its biggest-ever natural gas supply deal with China as nations around the world sever economic and political ties with Russia over the country’s invasion of Ukraine.

The Russian gas giant signed a contract to design the Soyuz Vostok pipeline across Mongolia toward China, Gazprom said in a statement. If Russia reaches a new supply agreement with China, Soyuz Vostok will carry as much as 50 billion cubic meters of natural gas per year to the Asian nation.