China’s energy security is set to receive a significant boost with the annual imports from the Yamal natural gas project in the Arctic region. The current shortage of natural gas, especially in northern China, will be addressed with the increasing supplies from this project, according to an executive from China National Petroleum Corp (CNPC).
Jiang Qi, the general manager of CNPC Russia, highlighted the crucial role that imports from the Yamal project will play in enhancing China’s oil and gas reserves. This move will ensure a stable and long-term supply of natural gas for the country. CNPC has revealed that China is expected to receive more than 4 million metric tons of liquefied natural gas from Russia’s Yamal project annually once it reaches full operational capacity.
The collaboration between China and Russia in the energy sector has been described as mutually beneficial by Jiang. He emphasized the establishment of a long-term oil and gas cooperation framework through projects like the Sino-Russia crude oil transmission pipeline and the natural gas pipeline under construction. Additionally, the Yamal project is contributing to the development of the Northeast Passage in the Arctic Ocean, creating a direct sea route between China and Europe.
The transportation of LNG through the Northeast Passage is projected to increase significantly, resulting in reduced freight costs between China and Europe. Chinese shipyards have been actively involved in the project, gaining valuable experience and technology in Arctic exploration. Furthermore, Chinese enterprises have played a major role in the construction of the project, with 85 percent of module construction and operation of LNG carriers being handled by them.
The Yamal liquefied natural gas project marked a milestone with the loading of its first export cargo from the Arctic terminal. This development not only benefits China’s energy security but also provides Chinese enterprises in the manufacturing sector with valuable experience in working in the Arctic region. The total contract amount for the project’s construction and shipping services is significant, indicating the scale of China’s involvement in the project.
As China faces a gas shortage this winter due to the shift towards cleaner energy and reduced coal usage, CNPC is actively seeking additional gas supplies from Central Asian countries. Qu Guangxue, a CNPC spokesman, confirmed that negotiations are ongoing to secure additional stocks and ensure an adequate supply of natural gas within the country.
The partnership between China and Russia in the energy sector, particularly through projects like the Yamal natural gas project, highlights the strategic cooperation between the two countries. This collaboration not only addresses China’s energy needs but also contributes to technological advancements and experience in Arctic exploration for Chinese enterprises. The successful operation of the Yamal project is a testament to the fruitful energy cooperation between China and Russia, paving the way for a more secure and sustainable energy future for China.
