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Making Connections
China Starts Constructing Gas Pipeline to Russia

The massive project to connect a gas pipeline between Russia and China is officially underway, as Chinese state-owned hydrocarbon firm CNPC recently announced it had begun work on the Power of Siberia pipeline. Reuters reports:

China’s CNPC, Gazprom’s partner on the project, said its pipeline company had signed an agreement with CNPC’s pipeline project team on building a portion of the Russia-China eastern gas pipeline starting from Heihe on the border and running to Changling in Jilin province.

The report, posted on the company’s website last week, said it marked “the start of the execution stage from preparation phase”.

Russia is working on building out pipeline infrastructure and its own gas fields as part of the $400 billion deal Moscow and Beijing signed just over a year ago. Under that deal, China will annually receive 38 billion cubic meters (bcm) of gas for 30 years, starting just four short years from now.

The pipeline will extend to China’s east coast, but the two sides are working to finalize a second gas deal for a western route through the restive Xinjiang province. This framework agreement was signed last November and, if inked, would send an additional 30bcm of natural gas China’s way. Earlier this year both sides expressed a desire to expedite negotiations, though recently talks seem to have stalled over disagreements over price and “mutual distrust.”

China and Russia may make for uneasy partners, but both stand to benefit from this new energy relationship—Beijing gets an overland supply of natural gas, a cleaner alternative to the coal that’s wreaking havoc on its air quality, while Moscow gets a new customer just as the West is seeking to wean itself off of Russian gas. Problems may exist for the second deal, but the first is well underway.

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  • Jacksonian_Libertarian

    “starting just four short years from now.”

    Sure it will, we are talking about a state owned monopoly here! It is going to take 2 or 3 times as long, and it’s going to leak like a sieve from all the shoddy workmanship, materials, and graft, if it gets built at all.

    • Southern

      What’s wrong with state owned enterprises?

      The privatization of state owned enterprises is what made the US an oligarchy…… DUH…

      I must say and will advocate for taxpayer funded state owed services as opposed to corporately owned for profit run alternatives — Hell bottom line is that a corporate run alternative could not possibly function unless the state run not for profit model is eliminated by being privatized …urm are you starting to get the picture, private enterprise is free to build their own yet they won’t as they’re extremely greedy and need to eliminate the not for profit alternative.

      Corporate for profit = complete and utter crap when it comes to social welfare…

      Bottom line — Q – If private enterprise ever so desperately needs to have their own for profit model why are they proven unable to compete next to a taxpayer funded alternative?

      A – They’re not able to if you need more info please look up Sicko by MM

  • http://dolina-imeniy.ru/ Сергей

    Russia chooses China as a reliable long-term partner. Unlike the EU, China is interested in cooperation with Russia. This trend also interestno its further development in the direction of India and South Korea. Japan also has a strong interest from natural gas.
    Europe will receive gas from the Gulf and Iran – this region is considered a reliable Europeans – that is, so be it.

    Россия выбирает Китай, как надежного долгосрочного партнера. В отличие от ЕС Китай заинтересован в сотрудничестве с РФ. Это направление так же интерестно дальнейшим его развитием в направлении Индии и Южной Кореи. Япония так же проявляет большой интерес с природному газу.
    Европа будет получать газ от стран Персидского залива и Ирана – этот регион европейцы считают надежнее – что же, так тому и быть.

    • Southern

      Alternative gas is far far more expensive – please check this out – http://ian56.blogspot.de/2015/05/european-gas-supplies-options.html

      • http://dolina-imeniy.ru/ Сергей

        Thank you for useful information!
        But Europeans seem willing to pay more – that’s their goal pushed to the absurd – they want to get rid of the dependence of gas supplies from Russia. And they go to that goal – it’s such a new religion of the EU …
        Stupid of course – but it is the mainstream of European political elite.

        Большое спасибо за полезную информацию!
        Но Европейцы похоже готовы платить дороже – это их цель доведенная до абсурда – они хотят избавиться от зависимости поставок газа из России. И они идут к этой цели – это такая новая религия ЕС…
        Глупо конечно – но это мейнстрим европейской политической элиты.

        • Southern

          Ah ~ The public never chooses to pay more but its their masters that might have different ambitions — Remember the reason for Kiev declining on the EU association deal — simple maths – 160 Billion said Kiev would have been better off accepting the 15 B deal offered by Moscow and with no draconian conditionalities attached the main reason for fighting in Eastern Uki — Yet it’s always via deceptively termed free trade agreements that the people in the EU ultimately do pay more, just that they do not always realize this, not via the MSM anyway.

          A certain difference of standard, in a true free market the public would be able to choose to buy their supplies from the cheaper supplier and this is what it’s ultimately all about, competition over resources and the currencies these are traded in.

          • http://dolina-imeniy.ru/ Сергей

            Thank you for your comments. You are an interesting conversationalist. Today, when the pouring stream media frenzy is especially valuable. An independent view on current events helps balance their assessment.
            Yes, you are certainly right – the logic of market relations says that the actions of some Western countries and their leaders do not stand up to scrutiny. And it is more and more convinces me that the freedom of market relations, freedom of fair competition and independent business only cover double standards.
            Out of it – I am not aficionados of Putin – and I do not much like in Russia today (including those I do not like propaganda in the mass media of the Russian Federation) – but the prevailing public opinion in Western countries, fueled by the media tell me – from Russia decided to make a whipping boy. They know not what they do.
            “Life is like a snake crawling in the grass – until we drive the fountain dance” – a line from a popular song in Russian – very suited to today’s EU. At some point, society loses feelings for reality – lost feelings for action, comes the era of permissiveness.
            We in Russia understand the behavior of the US and the EU and their leaders – almost every step of the future in relation to the Russian Federation could be guessed. They have thousands of NATO aircraft and hundreds of ships, the US Federal Reserve has (now the money does not even need to print the machine –
            they simply added another digit in your computer – it’s just fantastic – you need a billion? No problem – we will write a number in a computer …). They have their own media – which belong to the political clans and billionaires. And they have a club of elite and elite politicians. They are so comfortable. And they will not tolerate a change of the system.
            But the world is changing – and the old system breaks down. Maybe it will not be like the last day of Pompeii – but the old political and financial elite can reach their homes in ruins – they vernutsa of another social events in honor of ourselves. And perhaps only then they will start to remember the counsel of his famous ancestors:
            “Take away my money, plants, machines and factories, but leave me my people –
            and soon we will create a factory better than the old. Leave me my factory – but take away my people – and soon the floors of factories overgrown grass ”
            Henry Ford.

            Спасибо за Ваши комментарии. Вы интересный собеседник. Сегодня когда льется поток информационного безумия это особенно ценно. Независимый взгляд на происходящие события помогает уравновесить их оценку.
            Да вы безусловно правы – логика рыночных отношений говорит что поступки некоторых западных стран и их лидеров не выдерживают никакой критики. И это все больше убеждает меня что свобода рыночных отношений, свобода честной конкуренции и независимого предпринимательства только ширма двойных стандартов.
            Поверте – я не являюсь поклоником Путина – и мне многое не нравится в сегодняшней России (в том числе мне не нравится пропаганда в СМИ РФ) – но сложившееся общественное мнение в западных странах подпитываемое СМИ говорят мне – из России решили сделать мальчика для битья. Они не ведают что творят.
            “Жизнь ползет как змея в траве – пока мы водим хоровод у фонтана” – это строки из одной популярной песни в России – очень подходят к сегодняшнему ЕС. В определенный момент общество теряет чуство реальности – теряется чуство меры, приходит эпоха вседозволенности.
            Нам в России понятно поведение США и ЕС и их лидеров – практически каждый будущий их шаг в отношении РФ можно угадать. У них есть НАТО с тысячами самолетов и сотнями кораблей, есть ФРС США (теперь деньги не нужно даже печатать на станке – они просто добавляют очередную цифру в своем компьютере – это просто фантастика! – Вам нужен миллиард? не проблема – мы напишем цифру в компьютере…). У них есть свои СМИ – которые принадлежат политическим кланам и миллиардерам. А еще у них есть клуб элитарных стран и элитарных политиков. Им так удобно. И они не потерпят изменение этой системы.
            Но мир меняется – и старая система ломается. Возможно это не будет похоже на последний день Помпеи – но старая политическая и финансовая элита могут застать свои дома в руинах – когда они вернуца из очередного светского раута в честь самих себя. И возможно только тогда они начнут вспоминать изречения своих знаменитых предков:
            «Заберите у меня мои деньги, заводы, станки и фабрики, но оставьте мне моих людей – и вскоре мы создадим фабрики лучше прежних. Оставьте мне мои фабрики – но заберите моих людей – и скоро полы фабрик зарастут травой»
            Генри Форд.

          • Southern

            The Irony about the US, she is not a democracy but an oligarchy, one that does consider another nation to be a democracy unless they privatize their state owned assets and industries, these will be snapped up with funds created out of thin air.

            The current GWOT and the encirclement of Russia and China is all about attempting Neo-Con friendly regime change onto these nations, after which their state owned assets will be privatized.

            But neither Russia nor China for that matter can be considered as model democracies at least they appear to have control over their sovereignty, and I like the idea behind BRICS.

            I care not what puppet is placed on the throne of England to rule the Empire, The man that controls Britain’s money supply controls the British Empire – And I control the money supply. ~ Nathan Mayer Rothschild

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