Published: Wed, December 04, 2019

Russian Federation opens natural gas pipeline to China

Russian Federation opens natural gas pipeline to China

Russian president Vladimir Putin and Chinese leader Xi Jinping on Monday launched the first gas pipeline linking the two countries.

During the ceremony Miller was shown ordering workers to open a valve allowing gas to pass across the border into China.

As multiple Canadian pipeline projects linger in limbo, Russian Federation and China have just turned on the taps on a natural gas behemoth long enough to connect Timmins, Ont., to Burnaby, B.C.

"The Power of Siberia enables Russian Federation to achieve many goals: to develop a new resource base, build infrastructure conducive to the socio-economic development, implement major investment projects in the field of gas processing, and get the opportunity to make chemical products", Grivach said.

Xi called on both countries to redouble their efforts to initiate more key projects like the east-route natural gas pipeline, to boost both countries' development and better benefit both peoples.

The shift of market focus to the East will help Russian Federation, one of the largest exporters of natural gas, skirt the adverse effects of Western financial sanctions imposed over its 2014 annexation of Ukraine's Crimea.

The central aim of this gas pipeline is to pump natural gas to China and Russia's far-east regions.

The deal was forged in 2014, when China National Petroleum Corp. and Russia's Gazprom signed a 30-year, $400 billion gas supply deal, China's CGTN reported Monday.

Gazprom has stressed that the pipeline ran through "swampy, mountainous, seismically active, permafrost and rocky areas with extreme environmental conditions".


Work has also been completed on the first road bridge between Russian Federation and China, further linking the two neighbours.

Regarding Russia-China energy cooperation, Belogorey said Chinese companies have already participated in the Yamal liquefied natural gas (LNG) project in Arctic Russia and the Arctic LNG-2 project, the two largest of their kind in Russia.

The pipeline, he continued, "takes Russia-China energy cooperation to a whole new level and brings us closer to achieving the goal set together with Chinese President Xi Jinping of extending bilateral trade turnover to $200 billion in 2024".

Xi said the pipeline was a milestone in energy cooperation that underscored the deep integration between the two countries.

The pipeline's capacity could further increase beyond 2024, PetroChina Vice President Ling Xiao said in June.

The partnership between the two nations came in response to the sanctions levied on Russian Federation following its annexation of Crimea.

The Nord Stream 2 pipeline, being constructed by Gazprom and European partners, is more than 80% complete and due to begin operations in the middle of next year.

TASS said that deliveries had started flowing through the pipeline as of Monday, although the amount will start small and then ramp up over the years. Now, 38 billion cubic meters will be delivered annually to China.

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