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DECEMBER 2022

Gas Prospects For Russian-Chinese Cooperation

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Gas Prospects For Russian-Chinese Cooperation

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 On February 4, Russia and China signed a new contract to supply gas to China. During Russian President Vladimir Putin’s visit to China, Gazprom and CNPC signed a new 25-year contract to supply 10 billion cubic meters of gas from the Russian Far East to China. This initiative falls within the framework of the political aspect. On February 4, Russia and China also concluded a joint statement of Russia and China on international relations, entering a new era, and global governance.

The new initiative has been nurtured for more than 6 years. In 2015, a memorandum on the project was signed, in 2017, there was an agreement on the basic conditions of supply, including volume of supplies, contract duration, the start of supplies, period of volume build-up, border crossing point. The project differs from the Power of Siberia initiative, according to which after the contract is signed, the pipeline is built and the equipment is set up.

The gas pipeline involved in the new initiative is called Sakhalin-Khabarovsk-Vladivostok. Talking about the details, its length is 1,800 km. It has already been expanded on a 353-kilometer section from Komsomolsk-on-Amur to Khabarovsk. It is planned to increase its capacity with through the compression stations. A 25-kilometer section from the main branch between Khabarovsk and Vladivostok will also be built. On top of that, a main gas pipeline branch, a gas metering station, natural gas preparation equipment for transportation and gas purification and dehydration facilities will be built.

Currently, Gazprom is developing the Kirinskoye and Yuzhno-Kirinskoye fields.  At the Kirinskoye field gas production began in 2014, according to the project plan, 5.5 billion cubic meters should be used 1.2 billion cubic meters were used. 7 more wells were recently built, so the rate of gas production will be increased. The Yuzhno-Kirinskoye field was discovered in 2010, but will not be in action until 2023. The total gas reserves of this field are 611.7 billion cubic meters; 22 wells have already been constructed; 21 billion cubic meters of gas will be produced per year.

The new contract is not the largest gas contract between Russia and China. For example, the Power of Siberia provides 38 billion cubic meters per year, the Power of Siberia 2 provides 50 billion cubic meters. The new initiative is only an addition to Russia’s main supplies to the PRC. Thus, in 2018, Gazprom delivered 242 billion cubic meters of gas to China, including liquefied natural gas.

The pipeline borders Heilongjiang province and stretches to Beijing. This project is important for China, as it acts as a more profitable alternative to liquefied natural gas. Liquefied natural gas is supplied to China by Indonesia, the United States, Malaysia and Qatar.

In 2021, China’s gas imports amounted to 160 billion cubic meters. Now China is in an active stage of switching production from coal to gas, which is being successfully implemented. China is now moving into the leading position in the world in terms of imports of liquefied natural gas. As part of the 14th Five-Year Plan, the goal was to switch to a low-carbon and green economy and limit emissions, so the government is actively developing the gas sector.

Bloomberg, citing its sources, previously reported on negotiations between Chinese importers of LNG, including Sinopec and PetroChina, on the purchase of gas from Russia at reduced prices. According to the agency, importers are considering using Russian companies to participate in tenders for the purchase of LNG on their behalf in order to hide these transactions from foreign countries.

On April 6, Reuters reported, citing six anonymous sources, that Chinese state-owned companies retain existing contracts for oil supplies from Russia, but refrain from concluding new ones amid Beijing’s cautious position in connection with Western sanctions against Moscow. State-owned Chinese energy companies PetroChina, Sinopec, Sinopec and CNOOC reportedly decided not to bid for Russian oil supplies in May. They do not want the purchase of additional volumes of oil to look like support for Russia, two sources said.

Earlier, Zhao Lijian, a spokesman for the Chinese Foreign Ministry claimed that the Chinese government will take drastic measures in case the US and other Western countries put pressure on Chinese companies because of anti-Russian sanctions. Mr. Lijian reiterated China’s official position on the rejection of any unilateral sanctions. According to him, the restrictions will cause serious difficulties for the economy and living conditions of people in the countries concerned, which will lead to a situation where both sides lose out, which will further exacerbate the division and confrontation.

The new initiative between Russia and China will complement the existing cooperation between the two countries in the gas industry, bring additional benefits to both sides, and provide new jobs for workers in the two countries.

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>Mr. Lijian reiterated China’s official position on the rejection of any unilateral sanctions. According to him, the restrictions will cause serious difficulties for the economy and living conditions of people in the countries concerned, which will lead to a situation where both sides lose out, which will further exacerbate the division and confrontation.

It would be natural to impose unilateral sanctions against Russia’s unilateral aggression against Ukraine. On the other hand, countries around the world have not imposed sanctions on the U.S. invasion of Iraq or Israeli settlements. Such double standards should not be allowed, but the double standards of the US and Israel should not be used as justification for “invasion of another country by its own country”. There are thieves in every country, but do you justify the act of thievery on the basis of their existence? While American and Israeli double standards should not be tolerated, that does not justify Russia’s actions. Also, Russia’s actions in trying to relativize the crime and lessen the guilt are not in Russia’s own best interest. The Soviet Union (Russia, which succeeded the Soviet Union) has spread harm throughout the world. It is nothing compared to the United States. Corruption among politicians and security agencies (police) is also terrible, isn’t it? Russia does not have a large economy (below South Korea) and ranks low on the human rights index. However, no matter how bad it is, if the Russians want it, it is not for outsiders to say. There are also unique communities in the United States, such as the Amish. But if Russia is a member of the United Nations and a permanent member, it should abide by the UN Charter more than any other country. But the reality is quite the opposite. Russia does not contribute to world peace. If you don’t want to contribute to world peace or don’t even want to contribute to world peace, get out of the UN.

P.S. Russians always make “liberals” and “Jews” out to be evil, but “world peace” and “human rights” have nothing to do with liberals or Jews.

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Vlad the butcha

Chinas society lives on the money drug. No money, no peace, but revolution.

China can’t afford an economic downturn and will do anything to keep the people consuming the planet happy, as else there’s little which would keep the society together. China is a multi ethnic society after all, people tend to forget about that.

Only facts

Agree with you in general but China is not multi ethnic , Han Chinese make about 92% of the population. They have a few regions but it pales to compare with the diversity of most countries even in asia

Vlad the butcha

The high number of Han Chinese doesn’t mean much for several reasons. Go from the north to the south, go from the west to the east. Then you will see the real differences.

Northern Chinese are far taller than those in the south, which is one of the more obvious differences. Food culture varies a lot, so far that different types of cancer can be attributed to them. Much more to that, but pointless to discuss here.

Only facts

Sure but food culture and stature also varies a lot in Italy from north to south and its much smaller than China. For its size is fairly homogenous

Last edited 7 months ago by Only facts
jens holm

How the eyes are is different too. Most people think the chinese mainfood is rice but it is wheat.

Nice to read something which is not about war. Thks.

When I was a student I made almost a book about food production. Now I remember. I was hard work but not forst class, but it was accpted.

In those days You almost only could the propaganda version. Its much better now.

hans raus

You can’t find China on the map, or the map lol. You clueless and brainless chimpanzee.

jens holm

Yes we gets tricked in numbers becaue they have so much low populated land.

Bu also think You are tricked. Those many Han chinese are very different even in language versions.

Jim

China is racially homogenous you retarded turd. the USA and EU are the multi ethnic racial mix

mistiick

Is US any different in that aspect? I dare to say that exposing both countries to similar economic shock would sooner make a revolution in USA than in China, which is culturally closer to colectivism. Not to mention that China is basicly 90% han Chinese, while US is a mess with all sorts of ethnicities, religions, races, basicly glued together with unbridled greed, which is a core ingredient of american “dream”.

mistiick

To add on this, i see many have false expectations how unstable Chinese inner situation is and how close West is to trigger some sort of unrest and anti government revolution there. Most of this is based on misunderstanding of Tianmen events, which were basicly a protest against Deng Xiaoping economic reforms. Similar silent protest is happening now, with great many young people wearing badges of Mao Zedong as a form of protest – a protest for more equal society and against rich elites. That is also why Xi is now taking small but firm steps towards more fair and equal society, reforming old liberal capitalism left by likes of Deng Xiaoping and Hu Jintao. Basicly, to start a revolution in China you need to have an establishment with idea to abandon socialism there.

none

What society does not live on “money”? I wonder, with all the Russian goodies being diverted over to China from Europe, who’s society will go broke? Russia’s? China’s?, or the EU’s? We’ll see how the German people behave during the most intense downturn since WW2. We’ll see.

jens holm

You should be spanked some. They have had nothing for centuries which includes Mao.

Now they finally improve their living standars making the cake to share bigger.

Hunter Biden

Retarded nonsense your every dumb word.

Naturetruth

Your Hindi translation using Google is broken and illegible. So you won’t get your 2Rps.

Ashok Varma

The real issue is that the illegal sanctions against Russia have backfired on the racist west. The US today threatened India that if it did not sanction Russia, “severe consequences” will happen. India just gave them the finger as US and its British evil bastards are getting desperate as Russia is winning on all fronts. The Ruble has gone up by 20% since operation Z to liberate Ukraine from Nazis. JAI RUS!

Exile

The Peacekeepers were invited by the 7 million Ukrainians who are betrayed by the Kiev regime. 50,000 Ukrainians are fighting alongside the invited peacekeepers who are trying to end 8 years of civil war.

know the truth and it will set you free

jens holm

Typical is using double standards. The Propagandalfs of Russia live in two dimensions only.

The rest of the world dont give half a Turkish tourist camel about a writing like this.

opereta

Don’t forget to Pay in Rubles moron…….No Dollars nor Euros are accepted !! And if you want underwear or car parts, is Yuans you imbecile

Death

Chinese companies they refused to sign new contract with Russia in all sectors of Russian economy even at huge discount and you talking about cooperations..ha ha. Russian propaganda

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Сергей

But the West is still paying regularly. And even at inflated prices in all respects. Everything was fine with us and at a price of $ 200 per 1000 cubic meters. So we get super profits.

Vlad the butcha

The question is, how long the west still orders from China’s poodle, especially if it’s enough to stay afloat.

No military equipment without western electronics. But best Russian military equipment is from China these days anyway.

Those who really suffer will think twice, more than 300,000 people already did and left orc land.

The brightest gone, the society average age going up, yes, everything good in orc land.

Ashok Varma

The atrocities by Ukrainian Nazis as confirmed even by NYT today are turning the whole world against the Jew clown liar Zelensky. Russian economy is getting stronger by the day as it has complete Eurasian support. Killing and torturing surrendering Russian soldiers is not going down too well with Russian people or Russia’s friends.

Now Russia just needs to devote all its military resources on cleansing out the Ukrainian racist trash. JAI RUS!

Vlad the butcha

Still in happy la-la land? Good orc!

jens holm

You are not the whole world.

The rest is not correct.

Jens Assholm

Denmark is one tiny pimple on US butt. Go buy natural gas from Joe Bidens asshole, you slaves don’t deserve any better.

Jim

ukropistan is orc land you faggot

jens holm

Gays aare the best. They have time to work and pay a lot of tax. Most of them dont make children just for having fun.

Hip Hip for all faggots. Faggots should have rights to shoot anyone they wish.

Putin's MASSIVE Balls, NATO's empty nutsack

Orcs still kicking your asses, Haha….

Jim

shut up you filthy faggot

jens holm

Gays are the best. They have time to work and pay a lot of tax. Most of them dont make children just for having fun.

Hip Hip for all faggots. Faggots should have rights to shoot anyone they wish.

jens holm

Our in detail TV and Radio channels says its hard to see what the Chinese actaully do. So far they see them as a kind of neutral.

China needs both sides.

Some above speak about India. He is not right. India is in big trouble deciding as if they were themself and big only. They seemes to pay the price for it.

We see them strechting arms and hands to west asking us to come back. They are not able to devellop themself.

Its a big difference for Denmark. We offended them and they DEMANDED. Now they ASK and are almost polite.

They cant handle hightech of almost anything well. For Denmark we will build good windpowersystems for them.

Its pathetic to see Russian writers here telling India will do this and that. So many there are in the old days. The many more wealthy ones are keeping themlsef down in old family traditions 2000 years back in time.

Vlad the butcha

I’m Xi’s poodle.

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Special Operation Z

There is a Menorah in the top-left corner of the comic.

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Maju

It’s a mere classical lamp. I grew under stuff like that, now I live under a naked light bulb.

James

Many Trolls in the comments section these days. Southfront must be one of the few reporting the real facts.

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Pedo Andy from Fcukingham Palace

Ukie Nazi hoholasshole scum are losing bad so their NATO masters trolling and cyber attacks focus on SF for telling the truth. SLAVA ROSSIYA!

Pedo Andy from Fcukingham Palace

Ukie Nazi hoholasshole scum are losing bad so their NATO masters trolling and cyber attacks focus on SF for telling the truth. SLAVA ROSSIYA!

Last edited 7 months ago by Pedo Andy from Fcukingham Palace
Snagger

Yeah, and many of them sound like 16 year olds throwing around foul language and bigotry trying to impress other 16 year olds how grown up they are. There are people I know and respect who wold benefit frequenting this site, but I hesitate to recommend in most cases because of the toxic comment here. Stop it!

John Tosh

Looking Back Several Years.

I specifically warned the West CIA to be exact on Russian Insider of the following

1. Immediately cancel Russian sanctions and be friends with Russia for the survival of the USA. The CIA refused

2. Russians will detonate a nuclear device in the ocean that would create a Tsunami of Radioactivity that would render US NAVI useless, US military bases in States of Georgia, Florida, South and North Carolina useless. This was before the Russians disclosed the invention of the underwater nuclear drone. Remember my article was BEFORE the Russians mentioned the device was invented. The CIA laughed at me and told me to get medications.

3. Warned the West the continuous use of sanctions will render sanctions regime useless. Now the world sees the US sanctions are useless as long as a country can get powerful allies.

4. Warned the CIA North Korea has nuclear weapons BEFORE the first test by North Korea. Publicly published it on multiple websites. The CIA laughed at me until the North Koreans tested the first device.

Now if I have been correct in the past what do I see going forwards.

1. The global economy will break into two major competing blocks. On one hand would be the remnants of the G7 countries who stubbornly use Dollars and fiat currencies. These countries would over a few decades become extremely poor with starvation level events, global climate catastrophes and civil unrest.

The second block would include the rest of the globe on a gold standard backed by multiple currencies like the Chinese, Indian Russian and an African currency yet to be born. These countries will grow rich trading commodities and helping each other out. Surprisingly Africa will no longer be the black continent because it will become multiracial with all races freely moving and living where ever they choose.

The rest of the world will see a prosperous planet. The G7 countries (remnants of it) will have a very hard time surviving. They will look for visas to try to move to China Russia and Africa. They will have water wars in the West.

Let’s see if my visions are proven false. Only time will tel.

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jens holm

If You are an arab, You should let the jews build the Ark.

Oy!

Why would you think Free World would become poor? Any explanation? Would they loose ability to work? Would they destroy their own beautiful homes and cities? Would they destroy already built fantastic infrastructure? If not, how would they become poor?

John Tosh

I am telling you what I see… A good example of what the West would look like is Detroit Michigan. Former beautiful malls, homes and cities turned into smock! Just remember you heard it from me.

Last edited 7 months ago by John Tosh
Snagger

Regarding sanctions, I’m hearing rumors that the west is going to sanction Putin’s grandkids next- by breaking their crayons!

Oy!

Simple question. What would China do with all this Russian gas if the Western markets will close for Beijing forever?

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John Tosh

The Western markets will collapse without China. There would be riots in the streets when Fish goes from $12 a bag to $120 for a single fish.

Maju

They just don’t. The USA is the main purchaser of Chinese produce and they have become so etremely dependent that they can’t produce almost anything without its Chinese components.

Anyhow, China controls the rare earth’s production and already made years ago a drill showing the USA what could happen if they were not satisfied: for a while rare earths were not exported and that was very scary for the imports-dependent US pseudo-economy.

In fact the USA has been allowed for at least one decade to remain an importer for the sake of Chinese development, the situation has become so extreme that in 2019 transport costs were making further expansion of this Toyotist delocalization to China impossible, because empty containers piled up in Californian ports, as the USA exports almost nothing anymore.

It’s all been a trap, one that the US elites have been very much willing to fall for, much like ancient Roman elites were delighted to export silver in exchange of overpriced oriental luxuries like silk and cinnamon, totally irrelevant for the real economy but a must-have in every oligarchic household along with a few dozen slaves. That’s why Rome collapsed ultimately: instead of developing their own economy, they were purchasing luxuries to others.

A very similar case was that of the so-called Spanish Empire: all the silver looted in America was sent to Central Europe to pay for endless debts wasted into endless wars for the reconstruction of an Empire that could not be. Spain, or at least Castile, unlike England, did not develop its agrarian economy and thus collapsed in a succession of the worst bankruptcies ever.

If you have a good product you always have a customer: if it’s not the USA, it’ll be the internal Chinese market, India, Russia, Iran, Europe even. Just as Britain sold its guns to Morocco even if it could not access the Spanish market.

What we’re slowly learning now is that money is irrelevant, what matters is goods. Russia has oil, gas, grain and weapons and thus the ruble is strong. They just had to make some adjustments to payment system and offer a good price for gold to shore it up as it deserved. Money is just a mirror of goods, it’s only as good as what you can purchase with it. The US dollar was strong-ish largely because the US not so long ago was a net exporter and because Arab oil was exclusively sold for USD. That’s not anymore the case, so, even with the respite that European lackeyism is giving them by buying their shitty and overpriced gas and chemo-transgenic grain, let alone their weapons and protection racket (NATO) that won’t be enough. The USA and all NATO-plus is bound to disintegrate.

Maju

Fine but that is no alternative to the only market for West Siberian gas, which is Europe. This fraction of Russian reserves makes up 85% of all exported gas, which is a huge figure. There’s been talk and talk of building a trans-Siberia pipeline to serve that Western gas to China, or, via Central Asian branches to other nations like India, but there’s been nothing done yet and, whenever (and if) such a project begins, it’ll take many years, maybe a whole decade to be finished.

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