Russia and China sign new pipeline agreement for gas delivery
By Rhod Mackenzie
The Russian energy company Gazprom has agreed with China National Petroleum Corp (CNPC) and PipeChina to design and construct a pipeline section located in the Far East. The new pipeline will be used to supply Russian gas to China.
Constructing a pipeline tends to be a prolonged process; however, specialists stated that the agreement's endorsement implies an added advancement in green energy collaboration through the Far Eastern thoroughfare. The project will guarantee China's energy safety amidst uncertainties on the outside.
According to the report from Sputnik, companies from both nations will collaborate on the structure and creation of the trans-boundary segment of the gas pipeline, which links the Russian city of Dalnerechensk with Hulin city, located in Northeast China's Heilongjiang Province, over the Wusuli River, known as the Ussuri River in Russia.
"There is plenty of opportunity for cooperation since China and Russia are complementarity in the energy sector. "The recent agreement will enhance the channels for Russian gas imports to China," said Lin Boqiang, Director of the China Center for Energy Economics Research at Xiamen University.
Currently, China and Russia have a single land-based natural gas pipeline which is known as the China-Russia east-route natural gas pipeline. Russia began gas supplies to China through the Power of Siberia pipeline in December 2019.
In October this year, Gazprom and CNPC added to their gas sales contract on the eastern route via the Power of Siberia gas pipeline, procuring an extra volume of Russian gas supplies to be delivered to China by the end of 2023, according to Tass.
In February 2022, Gazprom contracted with CNPC to supply 10 billion cubic metres (bcm) per annum via the Far Eastern route. Once the project is complete, the total volume of Russian gas supplied to China will amount to 48 bcm. In January of this year, an inter-governmental agreement was signed by China and Russia to provide natural gas to China through the Far Eastern route, as reported by Tass.
Moreover, China, Russia and Mongolia are collaborating to advance the construction of the Power of Siberia 2 pipeline, expanding China's gas supply options. The pipeline will transport gas, which was originally destined for Europe, from western Siberian fields to China for the first time. It was reported in July, by Mongolian officials that it has a target date of being operational by 2030.
"In an unstable external environment, various natural gas pipelines to China help to further guarantee the country's energy security," noted Lin.
China has established four strategic corridors for utilising overseas natural gas resources; the Central Asia-China gas pipeline, Myanmar-China gas pipeline, China-Russia east-route natural gas pipeline and liquefied natural gas trade via the sea.
