China is planning to launch its own oil benchmark in October, similar to Brent and WTI, striving for a more important role in establishing crude prices. Unlike the Western benchmarks, the Chinese contracts will be nominated in the yuan, not the US dollar.
China is gaining an edge in energy deals with Russia as Moscow faces sanctions pressure from the conflict in Ukraine.
The latest energy accords announced in Beijing on the sidelines of the Asia Pacific Economic Cooperation (APEC) summit suggest that China is increasing its access to Russian resources while resisting demands for more favorable financial terms.
At a signing ceremony on November 9, Presidents Xi Jinping and Vladimir Putin sealed a memorandum of understanding for a second Siberian gas pipeline on a western route that Russia has promoted unsuccessfully for years.
The preliminary commitment to the project known as the Altai pipeline, named for a remote Russian border region, follows an agreement in May on an eastern Siberian gas line to supply China’s coastal cities and industrial northeast. Continue reading
Chinese and Russian oil companies signed several deals during the recent Asia Pacific Economic Cooperation annual meeting in Beijing, indicating that the two countries have entered a honeymoon period in the area of energy cooperation, Guangzhou’s 21st Century Business Herald reports.
China National Petroleum Corp (CNPC) signed framework deals with Russian oil company Rosneft and gas supplier Gazprom Nov. 9 for buying a stake in an oilfield in Russia and in gas supplies.
The deals came as Moscow saw a further drop in oil prices and in its currency, the rouble, since July, which has hurt the Russian economy, the newspaper noted. Continue reading
Russia’s gas producer Gazprom and China National Petroleum Corporation agreed in May that Russia will supply China with 38 billion cubic meters of gas starting from 2018-2019
The intergovernmental agreement to seal the deal to supply Russian natural gas to China via an eastern route will be signed during a meeting of the two countries’ prime ministers, Dmitry Medvedev and Li Keqiang, in Moscow, the source said. Continue reading
MOSCOW, June 26 (RIA Novosti) – Russia’s energy giant Gazprom says it sees no risk in using the Chinese yuan or the Russian ruble in accounting practices with Chinese companies, the company’s head of finance and economics, Andrei Kruglov, said Thursday.
“In regard to using the yuan or rubles in accounting, we are basically ready for that, we think that this is completely normal. There are no risks for Gazprom, except for minor transaction expenses,” Andrei Kruglov said. Continue reading
RIO DE JANEIRO — Brazil’s efforts to become one of the world’s major oil producers have attracted businesses such as U.S. drilling giants Halliburton and Baker Hughes, gained it partnerships with oil companies from India and China, lured immigrants from idyllic Norway and drawn investment dollars from American pension funds in Florida, South Carolina and California.
But the prospects for success have darkened in the seven years since Brazil first identified massive oil deposits in deep water off its coast. Many fear that Brazil’s chance to become one of the world’s major energy producers is fading as the global energy landscape changes dramatically. Continue reading
A specter is haunting Washington, an unnerving vision of a Sino-Russian alliance wedded to an expansive symbiosis of trade and commerce across much of the Eurasian land mass – at the expense of the United States.
And no wonder Washington is anxious. That alliance is already a done deal in a variety of ways: through the BRICS group of emerging powers (Brazil, Russia, India, China, and South Africa); at the Shanghai Cooperation Organization, the Asian counterweight to the North Atlantic Treaty Organization; inside the Group of 20; and via the 120-member-nation Non-Aligned Movement (NAM).
Trade and commerce are just part of the future bargain. Synergies in the development of new military technologies beckon as well. After Russia’s Star Wars-style, ultra-sophisticated S-500 air defense anti-missile system comes online in 2018, Beijing is sure to want a version of it. Meanwhile, Russia is about to sell dozens of state-of-the-art Sukhoi Su-35 jet fighters to the Chinese as Beijing and Moscow move to seal an aviation-industrial partnership. Continue reading
We have previously profiled the “holy grail” gas deal between Russia and China on several occasions, and noted last week how it is expected to be signed this week – pending some final price negotiations. It appears that was spot on as Reuters reports, Russian state-run Gazprom said it was still “one digit” away from finalising a 30-year gas supply deal with Beijing which is expected to crown Russian President Vladimir Putin’s visit to China next week. On the heels of Russia’s de-dollarization meetings, the coming week appears a crucial one for the history books of the US Dollar as reserve currency (or will China leverage Russia’s need to diversify from Europe and stall the deal once again?) Continue reading
“With a subtle motion of the hand” China took away the Turkmenistan – Afghanistan – Pakistan – India (TAPI) pipeline project from USA and became yesterday the chief controller of gas resources in Central and South Asia.
Somebody else’s ideas and plans have been expropriated by means of contract for sale of 25 bn cu m of gas per year concluded between State Concern Turkmengas and Chinese Company CNPC. The deal will increase the total volume of Turkmen gas supplied to China up to 65 bn cu m. At the same time the agreement is achieved on the planned new direction of Turkmenistan – China pipeline (D direction) for additional supplies. Continue reading
China has offered Sri Lanka new loans for infrastructure projects, worth US$ 2.2 billion dollars. In a reply to a question, the Chinese Foreign Ministry spokesperson, Mr. Hong Lei told the news media that in addition to infrastructure loans, both countries agreed to further deepen defence cooperation and maintain exchanges between two defence ministries, whilst they continue to carry out in cooperating defence technology, personal training and other fields. Yet, the spokesperson did not reveal further details regarding the nature of the new strategic cooperation.
Sri Lankan External Affairs Minister Professor G. L. Peiris, mentioned in an interview with Global Times that, Sri Lanka will embrace China’s rise and characterised bilateral ties as “very warm and mutually supportive”. He also mentioned that China has “stood the test of time”, referring to the military support the country extended during the last phase of the war against the LTTE, as well as the support given to Sri Lanka against a US-backed resolution at the UN Human Rights Council in Geneva. Continue reading
Beijing is keen to increase its involvement in the country following the planned U.S. withdrawal in 2014. But security problems may interfere.
For a relatively small drilling operation, China National Petroleum Corporation’s (CNPC) project in Afghanistan’s Sar-e-Pul province has a large footprint. Several layers of fences and containers serving as blast walls surround the extraction site, which includes dormitories, an office complex and various security structures. Throughout the day, trucks ferry in equipment and more containers. On the outside, the faces are all Afghan, but CNPC’s logo and bright red Chinese slogans are impossible to miss. Continue reading