Russia’s Gazprom and China National Petroleum Corporation (CNPC) have signed an agreement to increase annual natural gas supplies to China via the Power of Siberia-2 pipeline, as well as through the Russian Far East, Russian news agency RIA Novosti reported on Tuesday.

Specifically, the Russian company will transport up to 50 billion cubic meters of gas per year through the pipeline for a period of 30 years, RIA Novosti reports, citing Gazprom CEO Alexey Miller, who is in Beijing. According to Miller, the price of the fuel will be lower than what Gazprom currently charges consumers in Europe, Bloomberg reports.

According to the reports, the energy giant has also agreed to increase supplies to China via the existing Power of Siberia route by 6 billion cubic meters per year. The current annual capacity of the pipeline is 38 billion cubic meters.

According to reports, the volumes of supplies through the future Far Eastern gas pipeline with China, scheduled to start operations in 2027, will also exceed the initially planned 10 billion cubic meters per year. The length of the Power of Siberia-2 pipeline is expected to be 2,600 kilometers: it will start at the Yamal field and run to China via Mongolia. The pipeline’s planned supply capacity is approximately 50 billion cubic meters of gas per year.

After commissioning, Gazprom will be able to export 32.5 billion cubic meters of pipeline gas to China, originally intended for the EU and Türkiye, at contract prices.