China seeks more Russian gas as Putin, Xi to meet this week

China is seeking to buy more Russian gas through an existing pipeline as talks between the two countries have failed to make progress on building a second link, thwarting Moscow's quest for new outlets, two industry sources told Reuters.

- CHEN AIZHU VLADIMIR SOLDATKIN

Energy is expected to be high on the agenda when Russian and Chinese leaders Vladimir Putin and Xi Jinping meet in China this week.

A breakthrough on the $13.6-billion Power of Siberia 2 pipeline project to supply 50 billion cubic metres (bcm) of gas to China's northwest during the visit is unlikely, however, the sources said.

Instead, they say China is considering increasing its purchases of gas via the existing Power of Siberia 1 pipeline from the current 38 bcm.

The sources could not be named because they were not authorised to speak publicly on the issue.

Russia is keen to expand oil and gas exports to Asia after losing European markets because of Western sanctions in response to its invasion of Ukraine.

For more than 50 years, Russia has supplied gas to Europe from West Siberia, which used to provide 180 bcm a year, or up to 40% of Europe's gas needs, generating up to $90 billion a year for Moscow.