Russia approves agreement on supplying natural gas to China via Far Eastern Route: Tass

Russian Prime Minister Mikhail Mishustin approved an inter-governmental agreement to supply natural gas to China through the Far East Route. The move will accelerate energy cooperation between Russia and China, experts stated.

Sino-Russian energy cooperation is strategic, whereas the implementation of the agreement on gas supplies to China via the Far Eastern line is beneficial both to Russia and China, Mishustin said at a government meeting on Thursday, Tass reported.

The cooperation deal was signed on January 31, 2023 and defines the terms of cooperation for the supply of gas from Russia to China via the Far Eastern route, including the cross-border section of the gas pipeline across the Ussuri River near the cities of Dalnerechensk in Russia, and Hulin, Northeast China’s Heilongjiang Province, according to media reports.

The approval of the agreement shows that Russia’s natural gas exports to China will gain pace. It also indicates that the strategic cooperation between China and Russia will deepen especially in Russia’s Far East, Song Kui, head of the Contemporary China-Russia Regional Economy Research Institute, told the Global Times on Sunday.

He noted that closer energy cooperation is beneficial to both nations as China has a huge need for cleaner energy, and Russia, facing Western sanctioning, needs to develop more markets.

On February 4, 2022, Russia’s state-owned energy giant Gazprom announced it had signed a long-term agreement with China National Petroleum Corporation (CNPC) to supply natural gas to China via the Far Eastern Route.

“As soon as the project reaches its full capacity, the amount of Russian pipeline gas supplies to China will grow by 10 billion cubic meters, totaling 48 billion cubic meters per year (including deliveries via the Power of Siberia gas pipeline),” according to a statement on Gazprom’s official website.

Last year marked significant steps for China-Russia energy cooperation. Trade volume of energy accounts for 43 percent of their total trade. According to Chinese Customs data, Russia exported 86.25 million tons of oil, 15.5 billion cubic meters of piped natural gas, 6.5 million tons of liquefied natural gas and 64.07 million tons of coal to China in 2022, all setting new records.

In addition to energy trade, China and Russia are also cooperating on development of transportation and processing of scientific and technological equipment for exploration and mining — a new avenue of cooperation in the whole industry chain, Song said.

Russia in recent years has accelerated the pace of reform, working out preferential policies in its Far East to encourage foreign investment, including Chinese investment, Song said. For example, Russia has introduced a series of major measures, including setting up advanced special economic zones in the Russian Far East with favorable conditions on foreign investments.

Chinese Customs in May agreed to let Northeast China’s Jilin Province to add Vladivostok port in Russia as a cross-border transit port for trade transactions.

“The two countries have great potential in cooperation relating to energy, infrastructure, pipelines, railways and agricultural and food processing industry in the Far East,” Song said.

http://www.globalsecurity.org/wmd/library/news/russia/2023/05/russia-230514-globaltimes01.htm

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