China and Russia Ties Strengthened With Gas Pipeline Agreement

Published By : 03 Jul 2015 | Published By : QYRESEARCH

Energy cooperation between Russia and China has boosted further when construction of the Chinese section of the China Russia East Route Natural Gas Pipeline began on Monday. 

The pipeline on the Chinese side commences in China’s province Heilongjiang and ends in Shanghai. The project helps both nations energy strategy and guarantees energy security according to Zhang Gaoli the Chinese vice premier, who spoke at the construction start ceremony. 

The Russian side had begun construction last September, a potential western route is planned, and the negotiations are ongoing. The progress of the east route of the pipeline is crucial and has elevated mutual trust between the two nations, according to China University of Petroleum’s Professor Liu Yijun. 

The deal for the east route was signed on May 14, 2014 by the Russian Gazprom gas giant and (CNPC)China National Petroleum Corp. The contract agreement is for 30 years, and China will be provided annualy with 38 billion cubic meters of natural gas from 2018. 

On completion of both east and west routes, Russia will provide natural gas amounting to 70 billion cubic meters to China every year. Russia is under great pressure about energy exports, after the Ukraine crisis, and is looking to the east for solution. China is also on the path to combat pollution and needs natural gas imports. 

The contract is one of mutual gain for both countries according to the Russia Research Institute of China Institute of Contemporary International Relations’ head, Feng Yujun. With the contract and the pipeline, China gains reliable and secure clean energy that will help China’s economic development on a long term basis.

Through the agreement China’s northeastern industrial base will be revitalized and Russia’s development on the Far Eastern side. The two countries should progress on expanding all-round collaboration in electricity, coal and nuclear energy.
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