Gas pipelines and city gas: Geopolitics and regulation

Pipelines as foreign policy: Europe cuts Russia, Russia turns east

Pipelines lock buyer and seller together for decades, so they are tools of foreign policy. In 2026 Europe is legislating Russian gas out, Russia is turning to China, and methane rules are being delayed under market stress.

Tailwinds

Gazprom and CNPC signed a legally binding memorandum for Power of Siberia 2 (50 bcm per year) and agreed to lift Power of Siberia 1 from 38 to 44 bcm per year; by May 2026 price terms were still unresolved¹⁶³³

About 69,700 km of gas pipelines under construction worldwide, worth about 193.9 billion USD, 82% in Asia¹⁰

Germany's 9,040 km hydrogen core network, about 60% converted gas pipe; first capacity bookings opened on 19 March 2026¹²¹³

The de facto closure of the Strait of Hormuz from the end of February 2026 cut off almost 20% of world LNG supply, raising the value of overland pipeline gas¹⁴

Headwinds

Regulation adopted on 26 January 2026: full LNG ban from the start of 2027 and full pipeline gas ban from autumn 2027; company fines of at least 40 million euros. Russian gas was still about 13% of EU imports in 2025, down from 64% of supply in 2021¹⁵³⁴

TurkStream carried an average 51.9 million cubic metres per day in August 2026 and 44.8 in September (Reuters, from ENTSOG data)¹⁷³⁵

After the Commission proposed a one-year delay, the European Parliament voted 341 to 225 for a three-year delay to methane obligations on importers, due from 2027; talks with the Council followed¹⁸

Pakistan halted its section of the Iran to Pakistan pipeline after US sanctions on Iran, while Iran finished its side; it was still about a decade late in 2024¹¹

The 2026 regulation is meant to take Russian gas in the EU to zero, leaving TurkStream as the last Russian pipeline flow to unwind. Safety and permitting stay national: in the US, PHMSA sets safety rules and FERC approves interstate lines and their noise limits; in India, PNGRB licenses city gas areas.

Sources

1. Global gas pipeline expansion: nearly US$200 billion under construction, with Asia building over 80% Global Energy Monitor, 2023
2. Globally 70,000 km gas pipeline under construction for $194B Anadolu Agency, 2024
3. Bundesnetzagentur approves hydrogen core network Bundesnetzagentur, 2024
4. Hydrogen core network FNB Gas, 2026
5. Gas Market Report, Q3-2026: Executive summary IEA, 2026
6. Russian gas imports: Council gives final greenlight to a stepwise ban Council of the EU (via EEAS), 2026
7. Russia and China sign MoU for 50 bcm/year Power of Siberia 2 gas pipeline Enerdata, 2025
8. TurkStream gas flows to Europe climb 3% in August as sole Russian transit route (Reuters) Pipeline and Gas Journal, 2026
9. EU Parliament backs 3-year delay to methane importer obligations S&P Global Commodity Insights, 2026
10. Russia, China revive talks on Power of Siberia 2 pipeline (Reuters) Pipeline and Gas Journal, 2026
11. EU formally adopts ban on Russian pipeline gas and LNG imports Enerdata, 2026
12. Russian gas flows to Europe via undersea pipeline decline in September (Reuters) Baird Maritime, 2026