Talks also underway on gas supply route to China via Altai Mountains.
New rail bridge linking the two countries symbolizes closest-ever economic co-operation between neighbors.
Presidents Vladimir Putin and Xi Jinping oversee agreement of an historic pact ahead of G20 meeting in St Petersburg.
Analysts say opening of LNG facility in Queensland with exports to China could affect Yamal as Pacific countries look to take on Russia in Asia.
Pipeline will go through pristine Altai Mountains in supply route seen as economically vital by Kremlin.
The Russian president pledges to open up exports of liquefied natural gas to meet Far East demand.
Pipes are built over bulging and unstable Arctic pingos prone to violent eruptions caused by 'thawing methane gas', as seen twice on the Yamal peninsula this year.