The material was prepared by Zheng Xin and provided by
China Daily, a partner of TV BRICS.

Russia and China are building a broader and greener energy partnership that goes far beyond traditional trade in fossil resources to include cooperation in hydrogen and renewable energy, a think tank said.

This deepening interaction is indicative of growing ties between the two countries in various sectors, said Zhang Xiuling, Director of the Overseas Investment Environment Department at the Beijing-based Economics and Technology Research Institute of China’s major oil and gas corporation.

She noted that Russia has become China’s largest oil supplier for the second year in a row. This has been helped by an increase in pipeline capacity, she said.

“Over the past 30 years, collaboration has expanded from the trade in oil to natural gas, pipelines, upstream exploration and development, engineering construction and equipment exports,” she added.

The specialist added that the close cooperation between China and Russia plays an important role in balancing global supply and demand.

“The market continues to be volatile, and competition in the energy field is intensifying, influenced by geopolitics, technological advances, responses to climate change and supply chain restructuring. With all of this, the rapid and stable development of China-Russia oil and gas collaboration is all the more important,” she said.

Zhang Xiuling believes that Russia’s role for China’s energy security can hardly be overestimated. As the expert noted, the eastern route of natural gas supplies is becoming increasingly important. This pipeline, the third after the China-Central Asia and China-Myanmar pipelines, was fully completed late last year and has reached full capacity, providing an annual supply of 38 billion cubic metres of gas.

According to the General Administration of Customs of the People’s Republic of China, although the Middle East still accounts for the bulk of oil imports, China imported 108 million tonnes from Russia last year, equivalent to 2.17 million barrels per day, or about 20 per cent of its total oil imports. China also imported 31 billion cubic metres of pipeline natural gas and 8.3 million tonnes of liquefied natural gas (LNG) from Russia last year, making the country one of the key gas suppliers for the country.

According to Zhang, the geographical proximity of the two countries remains an important advantage: oil and gas pipelines connect Russia and China directly, bypassing third countries, which reduces risks associated with transit routes.

She also noted the prospects for expanding cooperation across the entire energy value chain. Among the promising areas, the specialist named hydrogen energy and carbon capture, utilisation and storage technologies, as well as participation in the development of carbon markets. All this is in line with the goals of both countries to achieve carbon neutrality, Zhang emphasised.

The expert is convinced that Russia and China are well placed to work together in low-carbon technologies, carbon footprint monitoring and carbon market integration, especially against the backdrop of China’s rapid development in solar and wind power, electric vehicles and carbon markets.

“With both countries aiming for carbon neutrality before 2060, there is a lot of room for us to work together on hydrogen and carbon capture, utilization and storage. […] There is huge potential for a comprehensive partnership that extends beyond traditional fossil fuels into a new era of green energy collaboration.” Zhang concluded.

Photo:
iStock