Russia could deliver oil as well as gas to China along a planned route via Mongolia, President Vladimir Putin said in a recent statement.

Putin and Chinese leaders have confirmed their interest in moving forward with the proposed gas pipeline, the Power of Siberia 2, during Putin’s two-day visit to China.

“Moreover, it’s possible to lay both a gas pipeline and an oil pipeline in the same corridor,” Putin said, appearing to revive an idea that was discussed as far back as 2018.

Besides the proposed pipeline, Putin also mentioned other options for supplying Russian energy to China, including using tankers along the Northern Sea Route via the Arctic.

He stated that all options are possible and economically feasible, and the best one will be chosen.

Putin’s energy point man, Alexander Novak, stated in a television interview that they expect to sign a contract for the project soon.

The urgency for Russia to ramp up gas shipments to China has increased due to the collapse of its exports to Europe because of the war in Ukraine.

Putin said it was a complex process including questions of pricing, but that China’s growing economy needed energy and there was no more reliable supplier than Russia. The project would also be immune to Western sanctions, he said.

“Nobody can get in the way of this, neither sanction on tanker fleets or even sanctions on financial institutions. We will buy and sell everything in our national currencies. So, the interest from both sides is confirmed.”

The proposed pipeline would carry 50 billion cubic meters of gas per year from the Yamal region in northern Russia, almost as much as the now idle Nord Stream 1 pipeline from Russia to Germany under the Baltic Sea that was damaged by explosions in 2022.

Currently, Russia sends gas to China through the Power of Siberia 1 pipeline, which began operating in 2019.

According to Reuters, experts predict that China will not need additional gas supply until after 2030, which could lead to tough negotiations on pricing for the second pipeline via Siberia.

The cost and financing of the 2,600 km (1,600 miles) Power of Siberia 2 pipeline have not been disclosed by Moscow. Some analysts estimate the cost to be up to $13.6 billion.