Russia and China sign series of energy agreements

[Rahul92]

China and Russia have signed a series of agreements to boost energy co-operation during a ceremony to open an oil pipeline between the countries.

Leaders of the two nations agreed deals on gas supplies, energy efficiency, renewable energy and nuclear power.

The presidents of Russia and China toast the signing of a series of deals on energy co-operation

President Dmitry Medvedev is visiting China, where he and President Hu Jintao opened a pipeline that will supply Russian oil under a 20-year deal.

Both sides hailed the move as a "new era" in co-operation.

Russia's Deputy Prime Minister Igor Sechin told reporters in Beijing that Russia was in talks with China on plans to supply natural gas from 2015.

"Russia is ready to meet China's full demand in gas", said Mr Sechin.

However, while it is thought that the two sides have agreed terms on the volume of gas to be supplied, they have not agreed a price.
'Milestone'

In August, Russia opened its section of a 625-mile (1,000km) oil pipeline from eastern Siberia to China.

The pipe connects Russian oil fields with Daqing, a major oil production base in northeastern China.

"Both sides believe that the current strategic partnership between China and Russia stands at a new starting point," President Hu said.

"The smooth completion of the pipeline project is a model of the two countries' mutually beneficial win-win cooperation and a milestone for Sino-Russian energy co-operation."

 

[Rahul92]

this series of friendship doesn't last long due to arrogance of china

 

[LETHALFORCE]

This will give Russia leverage over China, if China does not behave turn off their gas like Ukraine and Europe!!!!!!!

 

[amoy]

Inter dependence is the theme. And economic ties are the most lasting and profound to bind both together nowadays.

For example Tianwan Nuclear Power Station (No.1 &2 ) was a big order when Russian nuclear industry was at the verge of 'bankruptcy' after collapse of USSR, and of course was bargain for Chinese at that time.

And gas - China has a very diversified source of supply. The most note-worthy is the gas pipeline to Burma under construction.


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The two heads of state also issued a joint statement on the 65th anniversary of the end of the Second World War.
Besides the joint statements, the two sides also signed an agreement on the fight against terrorism, separatism and extremism along with commercial deals covering coal, nuclear energy and banking.

The deals included a protocol of a memorandum of understanding on cooperation of coal, a strategic cooperation agreement on peaceful utilization of nuclear energy, a letter of intent on investment between the China North Industries Corporation and RUSAL, the world's largest aluminum producer, a contract on technology design for the No. 3 and No. 4 units of the Tianwan Nuclear Power Plant in Lianyungang of east China's Jiangsu Province, an additional agreement on buyer's credit for export between Industrial and Commercial Bank of China and Russia's VTB Bank, as well as several agreements on energy cooperation.

 

[tony4562]

India is facing a serious energy problem. Unlike China who itself is a major oil producer, and at same time world's largest coal producer and world's largest hydroelectric power producer, india is heavily dependent on foreign oil, mainly from middle eastern countries who while not outright hostile to India, are much closer to India's arch-rival Pakistan.

And building a land-based pipeline from Russia or Iran too India will have to go through either Pakistan or China, there is no escape from it, thus virtually out of question. On on top of that chinese oil companies armed with 1o times more cash, have gone from victory to victory in securing oil rights around the world, often at cost of India.

 

[Rahul92]

we have Indian ocean & other sea's around but its highly expensive for Way . But our government is not interested in country's welfare in creating electricity and cmng to second point about coal

Production of Coal by Country and year (million tonnes)[71][72] Country↓ 2003↓ 2004↓ 2005↓ 2006↓ 2007↓ 2008↓ Share↓ Reserve Life (years)↓
China 1722.0 1992.3 2204.7 2380.0 2526.0 2782.0 42.5 % 41
USA 972.3 1008.9 1026.5 1053.6 1040.2 1062.8 18.0 % 224
EU 638.0 628.4 608.0 595.5 593.4 587.7 5.2 % 51
India 375.4 407.7 428.4 447.3 478.4 521.7 5.8 % 114
Australia 351.5 366.1 378.8 385.3 399.0 401.5 6.6 % 190
Russia 276.7 281.7 298.5 309.2 314.2 326.5 4.6 % 481
South Africa 237.9 243.4 244.4 244.8 247.7 250.4 4.2 % 121
Indonesia 114.3 132.4 146.9 195.0 217.4 229.5 4.2 % 19
Germany 204.9 207.8 202.8 197.2 201.9 192.4 3.2 % 35
Poland 163.8 162.4 159.5 156.1 145.9 143.9 1.8 % 52
Total World 5187.6 5585.3 5886.7 6195.1 6421.2 6781.2 100 % 142

 

[LETHALFORCE]

Tony can you stop your ignorant posts, what middle eastern country is hostile toward india? Which Chinese oil company has 10 times more cash than reliance?? Chinese oil companies are owned by the communist govt and Indian companies are owned by shareholders this fact alone puts a cap on chinese oil.

 

[tony4562]

Tony can you stop your ignorant posts, what middle eastern country is hostile toward india? Which Chinese oil company has 10 times more cash than reliance?? Chinese oil companies are owned by the communist govt and Indian companies are owned by shareholders this fact alone puts a cap on chinese oil.

All the large chinese companies, private or state owned, are listed on major markets around the world. And as china's foreign reserve is roughly 10 times larger than India's, i stand correct that chinese companies have a huge cash advantage on their side.

I said clearly that no middle eastern country is currently hostile towards india, but when push comes to shovel you know, i know everyone knows whom between Pakistan and India the arabs with side with. I think it will be automatic should India one day go to war with Pakistan, regardless who the agressor is, india's oil supply from middle east will be cut off. Now india being in bed with Israel certainly does not help in this regard.

 

[LETHALFORCE]

post this fact of the 10 times cash position

which oil companies are not state run??

State-Owned Oil Companies vs. the Free Market - WSJ.com
The Long Shadow of the Visible Hand

China and Russia are leading the way in the strategic deployment of state-owned enterprises, and other governments have begun to follow their lead. In defense, power generation, telecoms, metals, minerals, aviation and other sectors, a growing number of emerging-market governments, not content with simply regulating markets, are moving to dominate them. Fueling state-corporate activity is a new class of sovereign wealth funds, investment vehicles established by states with large foreign currency holdings that are designed to maximize the state's return on investment.

States use these tools to create wealth that can be directed as political officials see fit. The ultimate motive is not economic (maximizing growth) but political (maximizing the state's power and the leadership's chances of survival). This can distort the performance of markets. State-run companies and investment funds are also burdened with the same bureaucracy, waste and political cronyism that burden the (often authoritarian) governments that control them.

 

[badguy2000]

This will give Russia leverage over China, if China does not behave turn off their gas like Ukraine and Europe!!!!!!!

haha, it is always the poorer guy that is in a disadvantagious positon.

 

[LETHALFORCE]

haha, it is always the poorer guy that is in a disadvantagious positon.

what advantage do you poor commies have against USA??

 

[Tshering22]

Nothing much epic expected in this. I mean Russia and China are neighbours, they share borders and naturally considering the big $$ signs that Medvedev can see for Russian economy through this deal, no biggy. I used to think that they already are having energy agreements. Surprised to see that only now they're signing up.

 

[lurker]

haha, it is always the poorer guy that is in a disadvantagious positon.

So.. Russia is in a disadvantageous position re the EU with regards to natural gas?

the poorer isn't necessarily at a disadvantage if the richer must rely on that poor nation for the resources. If there is no viable alternative then they are very much at a disadvantage (the nation buying the resources).