Gazprom, the Russian energy company, is working together with China National Petroleum Corporation (CNPC) to expedite the implementation of gas supplies through the Far Eastern route, according to CNPC Vice President Xie Jun. The Far Eastern route involves the delivery of Russian natural gas to China from the shelf off Sakhalin Island.
During his speech at the St. Petersburg International Gas Forum, Xie Jun stated, “Our company and Gazprom are striving to build a closer energy partnership and are systematically accelerating the implementation of the gas supply project along the Far Eastern route.” This announcement highlights the commitment of both companies to strengthen their cooperation in the energy sector.
In February, Moscow and Beijing signed an agreement to increase natural gas supplies to China via the Far Eastern route. The project includes the construction of a cross-border section over the Ussuri River between the operational Russian pipeline and the Chinese city of Hulin. Once completed, the route is expected to have an annual capacity of 10 billion cubic meters of Russian pipeline gas delivered to China.
Currently, Russia supplies gas to China through the Power of Siberia pipeline, also known as the Eastern Route, under a bilateral 30-year agreement. Gas deliveries through this pipeline began in 2019 and are projected to reach a full operational capacity of 38 billion cubic meters annually by 2025.
Furthermore, Gazprom is exploring the possibility of supplying gas to China via the Power of Siberia 2 pipeline, which would pass through Mongolia. This pipeline is estimated to have a capacity of up to 50 billion cubic meters per year, with construction scheduled to commence in 2024. Once all the pipelines are fully operational, the volume of Russian gas supplies to China could potentially reach nearly 100 billion cubic meters annually.
This partnership between Gazprom and CNPC highlights the growing energy cooperation between Russia and China. As the demand for natural gas continues to rise in China, Russia is keen on capitalizing on this market opportunity. In recent years, Chinese imports of Russian gas have surged, indicating the increasing reliance on Russian energy resources.
The collaboration between Gazprom and CNPC not only enhances energy security for China but also strengthens economic ties between the two countries. As Russia seeks to diversify its gas exports and reduce dependency on European markets, China offers a significant opportunity for growth and expansion.
In conclusion, the cooperation between Gazprom and CNPC to accelerate gas supplies via the Far Eastern route demonstrates their commitment to strengthening energy ties between Russia and China. With the construction of additional pipelines, the volume of Russian gas supplies to China is expected to increase significantly, meeting China’s growing energy demands and promoting economic cooperation between the two nations.