Metals and mining, China Oil and Gas
Russia and China will diversify their cooperation in the energy sector and there is reason to talk about building the so-called "energy alliance" between the two countries.
The International Energy Agency (IEA) predicts an increase in world coal demand by nearly 200 million tons in the next five years - up to 5.64 billion tons in 2021.
Interview with RFPI chief Kirill Dmitriyev
In 2015 Russia increased supply of oil to China by 17.5% to 26.7 million tons – Russian ministry of energyEdited by Rhod Mackenzie / 2016-03-11 01:27:45
Today as a special representative of the government chairman Dmitry Medvedev, the Russian minister of energy Alexander Novak had a meeting with the deputy chairman of the Chinese state committee for development and reform and head of the Chinese state energy administration Nur Bekri. The parties summed up the Russian-Chinese energy collaboration in 2015.
According to preliminary data, in 2015, the goods turnover between Russia and the European Union decreased by 40% as compared to 2014 to $230billion, the First Deputy Head of the Ministry of Economy of Russia Alexei Likhachev stated.
"Valuation roll is very noticeable, clearly showing that, along with other economic groups, namely the European Union suffered the greatest losses in trade with Russia. In figures, this is the fall from $417 billion in 2013 to $230 billion by the end of this year," - he said.
Gazprom has started seriously thinking about the construction of power plants in China, which can be supplied with Russian gas through pipelines or as LNG. According to the Kommersant’s interlocutors, the Chinese have long offered the monopoly to participate in the development of local energy market. But experts are cautious: the projects of a thermal power plant on the regulated market of China can be cost-effective only under certain conditions and make Gazprom strongly dependent on the authorities.
Gazprom has announced a tender for a feasibility study the company participation in the projects of construction of gas thermal power plants in China and supply of gas to them. In particular, the construction of thermal power plants along gas pipelines from the Russian Federation, as well as in the vicinity of LNG receiving terminals is considered. It is also necessary to explore the possibility to attract Chinese financing. This is the first real proof of the Gazprom’s interest in the energy market of China, although the topic has been discussed at the negotiations with the Chinese at least since 2013. A source of the Kommersant in Gazprom confirmed that the possibility of building a generation in China was considered seriously.
CNPC (China National Petroleum Corporation) is about to build metallurgical enterprise in Kazakhstan. The plant will focus on the production of pipes 1400 mm in diameter, according to “Kazinform”.
Investments into the project will make up $150 million. The enterprise will be built on the territory of an industrial park in Almaty.
The amount of investment in the project of the Gazprom’s gas transportation system Power of Siberia, taking into account the development of fields, is estimated at $55 billion, the head of the Russian Energy Ministry Alexander Novak stated.
"Power of Siberia is a large-scale project, the value of which with the development of fields will be $55 billion, to date the assessment is so. And it's a huge order for our industry, because more than 90% of the equipment, pipes and other things will be ordered, of course, at our enterprises. Today, due to the fact that the construction has begun, our metallurgical enterprises have received a new order,"- said Mr. Novak.
Over 200 thousand tons of pipes have been delivered to Yakutia for the construction of Power of Siberia. This is a half of the necessary volume.
Currently 216 thousand tons of pipes have been shipped, this is 49% of the total volume (plan – 439 thousand tons). This winter over 185 thousand pipes will be welded in the Olekminsky district.
The total volume of cargo which will be delivered in the navigation period for the construction of Power of Siberia is 800 thousand tons. The navigation will be over in late September-October.
The cargo shipment is held according to the schedule. The first shipment started in May.
Authorities plan to include the port of Zarubino in the area of free port, which is being created in Vladivostok, instead of creation of port-based priority development territory, the Deputy Minister of the Russian Federation on the development of the Far East Maxim Shereikin says.