Russia’s Gazprom Signs Oil and Gas MoU With Mongolian Government

Gazprom has signed a memorandum of understanding with the Mongolian government aimed at developing a partnership in the oil and gas sectors. The document was signed during a working visit by a delegation from PJSC Gazprom led by Gazprom Mongolia Chairman Alexei Miller, Gazprom has stated.

Miller held working meetings with Ukhnaagiin Khürelsükh, the Mongolian president, and Gombojavyn Zandanshatar, the prime minister, in Ulaanbaatar.

The Mongolian side is completing the environmental assessment of the Soyuz Vostok gas pipeline from Russia to China, which will become an extension of Power of Siberia 2. The Power of Siberia 2 project involves supplying up to 50 billion cubic meters of gas per year to China through Mongolia from Russian resources in Yamal, Western Siberia. The project’s implementation timeline depends on the conclusion of a contract between Gazprom and China’s CNPC, with negotiations still ongoing.

Natural gas consumption in Mongolia, through which a transit gas pipeline from Russia to China will be laid, could reach 5.6 bcm per year by 2040, according to estimates by scientists from the Melentyev Institute of Energy Systems of the Russian Academy of Sciences’ Siberian Branch.

That in turn would help Mongolia wean itself off its old, Soviet-era coal-powered units, which create significant pollution problems in the winter months.