Putin says Russia possibly to create new pipeline to China
Date
5/20/2024 8:17:06 AM
(MENAFN) Russian President Vladimir Putin has unveiled plans to potentially extend the construction of a mega gas pipeline from Russia to China to include an additional conduit for crude oil transportation. The proposed project, known as the Power of Siberia 2, aims to transport up to 50 billion cubic meters of natural gas annually from Russia's Yamal Region to China through Mongolia.
During a press conference in China's Harbin city as part of his two-day visit, Putin indicated the feasibility of laying an oil pipeline alongside the planned gas route. He emphasized the need for experts to evaluate various transportation options for Russia's oil supply to China, suggesting that routing both gas and oil pipelines through the same corridor could be advantageous.
Traditionally, Russia has supplied oil to China through multiple channels, including the East Siberia-Pacific Ocean pipeline via transit through Kazakhstan and transportation by tankers. Additionally, Moscow plans to enhance rail infrastructure to facilitate crude oil transportation to the Chinese market.
While negotiations between Russia and China primarily focus on the mega gas pipeline project, Russian Deputy Prime Minister Aleksandr Novak hinted at the possibility of exploring other energy initiatives during discussions with Beijing. However, specific details regarding these potential projects were not disclosed.
Russia's significance as a major oil supplier to China surged notably in 2023, with Beijing importing a record volume of discounted Russian oil. This increase in oil trade between the two countries followed Russia's efforts to diversify its markets in response to Western sanctions related to the Ukraine conflict.
Putin's proposal underscores the evolving dynamics of energy cooperation between Russia and China, with potential implications for the region's energy landscape and bilateral relations.
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