Russia and China sign deal on second gas route

On the 9 November, Chinese President Xi Junping and his Russian counterpart Vladimir Putin vowed to enhance energy co-operation, which is of great significance to safeguarding the two countries' energy security. According to news reports, Putin and Xi signed 17 documents in relation to co-operation in the natural gas sector.

In order to boost their energy co-operation, the two countries signed a series of bilateral co-operation agreements, including an MoU on the China-Russia West Route natural gas pipeline and a framework agreement between China National Petroleum Corporation and Russia’s Gazprom.

Russia’s western route would supply 30 billion m³/yr of gas to China and is expected to be completed in 2020. It comes in addition to the eastern pipeline, which will deliver 38 billion m³/yr of gas to China. Work on the eastern route has already begun after a deal was clinched back in May. When the route is complete, China will become Russia’s biggest gas customer.

Last year, China consumed approximately 169 billion m³ of natural gas. For China, the co-operation helps ease gas shortages and curb its dependence on coal. The agreement gives Russia a way to vastly expand its marked for its gas, which now goes mostly to Europe.

During the meeting, Xi and Putin agreed that energy co-operation is crucial for the energy security of the two countries. China is Russia’s biggest trading partner, with bilateral trade reaching US$ 89.9 billion last year.

Edited from various sources by Hannah Priestley-Eaton

Read the article online at: https://www.worldpipelines.com/business-news/10112014/russia-and-china-sign-deal-on-second-gas-route/