Russian Energy Ministry hails Russia, China gas cooperation

By Al Mayadeen English
Source: Agencies
11 May 2023 21:20

Both China and Russia have achieved considerable results in their energy partnership, according to the official.

Russian Energy Minister Nikolay Shulginov (TASS)

Russian Energy Minister Nikolay Shulginov hailed on Thursday the Russia-China agreement on gas exports through the Far East route, calling it as "a serious step" in the development of gas cooperation between the two countries.

"The agreement on cooperation on natural gas supplies from Russia to China through the Far East route is a serious step in our gas cooperation with our Chinese partners," Shulginov said in a statement published by the Russian Energy Ministry on Telegram, adding that both countries have achieved considerable results in their energy partnership and expressed hope for further development in the future.

During a visit of Chinese President Xi Jinping to Moscow on March 21, Russian President Vladimir Putin and his Chinese counterpart signed a series of intergovernmental agreements aimed at boosting the industries and productivity of both countries.

They also signed an agreement on gas supplies via the Far East route which requires the construction of a cross-border section across the Ussuri River to the Chinese city of Hulin. However, the agreement has yet to be ratified.

Gazprom struck a $400 billion, 30-year deal in 2014 to send up to 38 billion cubic meters of gas per year to China through the Power of Siberia gas pipeline, with deliveries beginning in late 2019.

When Gazprom's supplies to Europe were curtailed due to the sanctions, shipments to China were consistently higher than daily contract quantities.

Russia and China struck a smaller gas contract in early February 2022 for a 25-year direct supply of up to 10 billion cubic meters per year from Far Eastern fields.

Talks are currently underway for the construction of the Power of Siberia 2 pipeline which would be capable of delivering 50 billion cubic meters per year to China through Mongolia.

Another intergovernmental agreement which is currently being discussed in the Kremlin involves the increase in the production and exports of Russian grain to China. The conclusion has already been decided and is currently being studied by the central bank of Russia. The execution of the order is scheduled for October 1, 2023.