Russia, China launch giant gas pipeline linking both countries

Russian President Vladimir Putin and China's President Xi Jinping launched a landmark gas pipeline on Monday, in a boost to economic and political ties.
A part of Gazprom's Power of Siberia gas pipeline at the Atamanskaya compressor station outside the town of Svobodny in the Russian Far East's Amur region.
A part of Gazprom's Power of Siberia gas pipeline at the Atamanskaya compressor station outside the town of Svobodny in the Russian Far East's Amur region.PHOTO: REUTERS

MOSCOW • Russia and China yesterday launched a giant gas pipeline linking the countries for the first time, one of three major projects aimed at cementing Moscow's role as the world's top gas exporter.

Presiding by video link-up over an elaborate televised ceremony, Russian leader Vladimir Putin and his Chinese counterpart Xi Jinping hailed the Power of Siberia pipeline as a symbol of cooperation.

"Today is remarkable, a truly historic event not only for the global energy market, but first of all for us and for you, for Russia and China," Mr Putin said.

Mr Xi said the project served as a model of cooperation and that "the development of Sino-Russian ties is and will be a foreign policy priority for both our nations".

The ceremony featured hard-hatted gas workers and videos showing the pipeline's difficult path from remote areas of eastern Siberia to Blagoveshchensk on the Chinese border.

Workers burst into applause and celebratory music played as Mr Alexei Miller, chief executive of Russian gas giant Gazprom, ordered a valve opened for the gas to pass across the border.

The 3,000km pipeline - which Mr Putin has called "the world's biggest construction project" - will supply China with 38 billion cubic m of gas annually when it is fully operational in 2025.

Russia and China signed a 30-year, US$400 billion (S$547 billion) deal for its development in 2014, in the biggest contract for Gazprom.

The 3,000km pipeline - which Mr Putin has called "the world's biggest construction project" - will supply China with 38 billion cubic m of gas annually when it is fully operational in 2025. Russia and China signed a 30-year, US$400 billion (S$547 billion) deal for its development in 2014, in the biggest contract for Gazprom.

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

Temperatures along the route plunge to below minus 60 deg C in Yakutia and below minus 40 deg C in the Russian Far East's Amur region.

The pipeline is part of Russia's efforts to develop ties with Asia - in particular top energy importer China - amid longstanding tensions with the West.

But Moscow remains a key gas provider to Europe and is also planning to launch two more pipelines that will ramp up supplies to the continent while bypassing Ukraine.

TurkStream, which Mr Putin and Turkish leader Recep Tayyip Erdogan hope to launch next month, is to transport Russian gas to Turkey.

Running under the Black Sea, the pipeline consists of two lines - the first intended for Turkish consumers, while the second will send gas to southern and south-eastern Europe.

Nord Stream 2, which would double Russian gas volumes to Germany, is expected to go online in the middle of next year, though it has faced opposition from the United States and countries in central and eastern Europe, particularly Ukraine.

They fear it will increase Europe's reliance on Russian energy supplies, which Moscow could then use to exert political pressure.

Analysts said the three projects have long-term economic and political benefits for Russia, which has inserted itself between European markets to the west and the rapidly growing Chinese market to the east.

"Russia is not only creating new income streams, but also hedging its bets and bolstering its position strategically," said energy analyst Andrew Hill.

AGENCE FRANCE-PRESSE

A version of this article appeared in the print edition of The Straits Times on December 03, 2019, with the headline 'Russia, China launch giant gas pipeline linking both countries'. Print Edition | Subscribe