On September 1, 2014, Russian President Vladimir Putin and Chinese Premier Zhang Gaoli initiated the construction of what they claim will be “the world’s largest construction project.” This 3,968 km “Power of Siberia” pipeline connecting gas fields between Russian’s Siberia and China’s Northeast region is expected deliver four trillion cubic meters of gas to China over the next thirty years. With an estimated 1.2 trillion cubic meters of gas and 93 million tons of liquid hydrocarbons stock, Chayanda fields in the Republic of Yakutia will be the chief production station conveying gas to Northeast China through the border city of Blagoveshchensk. The overall cost of this gigantic enterprise has been evaluated at more than 20 billion dollars, which covers other investments in the region totaling 7.5 billion dollars. Continue reading
In Energy Strategy-2030 of Russia, enacted at the end of 2009, it was stated that Moscow would put emphasis on the Asia-Pacific region in its energy exports in the coming years. Petrol and petroleum exports going to this region were targeted to be raised from 6% to 22-25% of total exports, and currently non-existing natural gas export to this region to 19-20% scale of total natural gas export. This Asia-Pacific opening is part of Moscow’s strategy to increase national revenues while promoting economic development in East Siberia and the Russia Far East, and, as well as to stem these regions’ chronic emigration problem. Also, increasing negotiating margin in its economic cooperation with EU by operating new oil and gas pipelines to the East also constitutes an important column of this strategy.
Rosneft, Russia’s newest energy giant, is a key pillar of this initiative. As one of Putin’s favoured firms, Rosneft owes a great deal of its success to Kremlin’s state-centred energy strategy — itself a part of a larger strategy to re-establish Russia as a global power. In that context, efforts to develop the company seem to have gained pace over the past years, and Russia’s currently rank, first with its 12.7 share in world oil production as of 2012, would likely to stay same, at least in short term. Continue reading
Russia’s decision to give China a share of prized Arctic exploration licenses as part of a “breakthrough” deal signals how the world’s largest oil and gas producer and the biggest energy consumer are redrawing the global energy map.
Under agreements signed during President Xi Jinping’s first state trip abroad, China may double oil imports from state-run OAO Rosneft (ROSN) to more than 620,000 barrels a day, challenging Germany as the biggest buyer of Russian crude. The two also plan to sign an agreement this year to build a pipeline to ship Russian gas to China. Continue reading
President Vladimir Putin yesetrday launched construction of the long-awaited South Stream pipeline that the Kremlin hopes will pump Russia’s gas to Europe while avoiding its unpredictable neighbour Ukraine
The pipeline will flow underneath the Black Sea and through the Balkans to supply energy giant Gazprom’s big European clients with Russian gas and ensure the security of its energy exports. Continue reading