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Diplomacy

Russia-China Energy Cooperation Reaches New Heights! 

by Press Xpress November 25, 2024
written by Press Xpress November 25, 2024
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Construction on the China-Russia East-Route Natural Gas Pipeline has been completed seven months ahead of schedule, marking a major milestone in energy cooperation between the two nations. The 5,111-kilometre pipeline, which stretches from Heihe in China’s Heilongjiang Province to Shanghai, is now in its final commissioning phase. It is expected to begin delivering gas to Chinese homes and businesses by the end of the year. 

Once fully operational, the pipeline will supply 38 billion cubic metres of natural gas annually, enough to meet the energy needs of 130 million urban households. This promises to alleviate persistent gas shortages in key regions, including Northeast China, the Beijing-Tianjin-Hebei cluster, and the Yangtze River Delta, an industrial and economic hub. 

Addressing Energy Security 

China’s government has hailed the project as a crucial step towards securing its energy supply. The pipeline is expected to reduce reliance on coal and support the country’s transition to cleaner energy sources as it works towards its targets of peaking carbon emissions by 2030 and achieving carbon neutrality by 2060. 

Zhang Hong, a research fellow at the Chinese Academy of Social Sciences, called the pipeline “a vital piece of infrastructure” for China’s energy diversification. “It not only ensures stable supply but also aligns with China’s green energy transition,” he said. 

The project includes 3,371 kilometres of newly constructed pipeline and connects some of China’s most densely populated and economically significant regions. The recently completed southern section links Nantong to Luzhi in Jiangsu Province, completing a route that stretches from the Russian border to China’s financial capital, Shanghai. 

Accelerated Development Amid Geopolitical Shifts 

Construction of the southern section began in 2020, with workers accelerating the timeline to meet growing demand. According to state-owned energy giant PipeChina, which led the project, the pipeline has already delivered more than 78 billion cubic metres of gas during earlier phases of operation. 

The project has gained additional significance in recent years as Russia has sought to deepen energy ties with China. Western sanctions following Moscow’s invasion of Ukraine have restricted Russian access to traditional markets, prompting the country to pivot to Asia. 

In 2023, pipeline gas supplies from Russia to China surged by nearly 62%, reaching $6.4bn, while crude oil exports grew by 24%. Analysts say the pipeline will strengthen Russia’s position as a key energy supplier to China while providing Beijing with a reliable source of natural gas. 

Meeting Rising Demand 

The pipeline’s impact is expected to be particularly pronounced in the Yangtze River Delta, where population density and industrial demand place significant strain on existing energy infrastructure. The region, home to cities like Shanghai and Hangzhou, often faces winter gas shortages, making the new pipeline an essential addition. 

“It’s not just about energy security,” Zhang noted. “The pipeline supports the development of a clean, low-carbon, and efficient energy system and promotes high-quality economic growth in eastern China.” 

Deepening Cooperation 

The pipeline is part of a broader energy partnership between the two nations, which was reaffirmed by Chinese President Xi Jinping and Russian President Vladimir Putin during talks earlier this year. The leaders described energy collaboration as vital for both countries’ economic and strategic goals. 

For China, the pipeline offers a way to reduce its dependency on coal, which remains a major source of pollution and greenhouse gas emissions. For Russia, it provides access to one of the world’s largest and fastest-growing energy markets at a time when its traditional markets in Europe are shrinking. 

As the pipeline prepares to go fully operational, it is being seen as more than just a piece of infrastructure. It symbolises a growing alignment between two of the world’s most influential nations, with energy trade forming a key pillar of their evolving relationship. 

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