Mongolia asks China and Russia to re-route gas pipe

For almost a decade, proposals for a gas pipe running between China and Russia have been discussed but the technicalities never agreed upon. In Mongolia, as key mining projects begin to come to fruition, the President has suggested that the pipe be passed through the country in a move to support the mushrooming economy.

The capital of Mongolia, Ulaanbaatar, has one of the world’s highest air pollution levels mainly due to the widespread use of coal fires. The gas pipe, according to the President, would allow the capital to switch to a greener source of power and thus increase the city’s appeal as both a residential and tourist destination This would obviously have huge positive implications for Ulaanbaatar’s real estate owners. 

So how likely is it that the proposal will be realized?

Logistically, it makes perfect sense. Mongolia is sandwiched by two economic powerhouses and as a result, re-routing through the country saves 1,000 kilometers of pipeline. However, Russia seems unwilling to comment on the subject with a spokesman claiming no knowledge of the proposal, and adding that decisions on energy transportation are made solely on economic feasibility.

This article is in reference to the following link: http://www.bloomberg.com/news/2012-07-02/mongolia-pushes-russia-china-to-re-route-planned-gas-pipeline.html