Russian state-owned gas giant Gazprom has set a new daily delivery record to China via the Power of Siberia pipeline on January 10, 2026, and confirmed that in 2025 it exported 38.8 billion cubic meters of gas to China, surpassing its European exports for the first time. This shift underscores China's growing role as a primary buyer of Russian gas, with implications for global energy and chemical supply chains reliant on natural gas as a feedstock.
Record deliveries and financial turnaround
Gazprom's daily gas flows to China via the Power of Siberia pipeline reached an all-time high on January 10, 2026, according to company statements. In 2025, the company delivered 38.8 billion cubic meters to China, exceeding its target of 38 billion cubic meters and marking a nearly 20% increase year-on-year. Deputy Chairman Famil Sadygov projected an 8% revenue increase from gas sales in 2026, with overall profit expected to rise by around 3 trillion rubles (approximately $30 billion).
Recovery from historic losses
This performance follows a difficult period for Gazprom. In 2024, the company reported a net loss of 1.076 trillion rubles ($12.89 billion) under Russian accounting standards, its second consecutive annual loss after a $7 billion loss in 2023—the first in over 20 years. Losses were driven by sanctions, reduced revenues from the Ukraine conflict, and a decline in Gazprom Neft's market value. In mid-2025, Gazprom announced plans to lay off about 1,600 employees amid the financial crisis.
Power of Siberia 2 pipeline faces delays
Gazprom's future growth in China hinges on the Power of Siberia 2 pipeline, designed to carry 50 billion cubic meters annually via Mongolia from West Siberian fields. However, no progress was reported on the project in 2025. Analysts suggest pricing disputes with China may be a sticking point. The pipeline is critical for replacing lost European market share, but its timeline remains uncertain.
China sourcing context
Since the Ukraine war, Russia has lost most of its European gas market, though some EU members continue to import cheap Russian gas. China is now Gazprom's largest buyer, but the Russian Economy Ministry estimated in 2025 that export revenues to China from 2025 to 2028 would be 30–40% lower than previous European exports. For chemical buyers, this means Russian gas—a key feedstock for ammonia, methanol, and other chemicals—will increasingly flow east, potentially affecting global pricing and supply dynamics.
Source: Read the original report | Published: January 13, 2026