“Moscow and Beijing are moving towards the formation of a strategic energy alliance… Chinese companies have joined gas projects on the Russian Arctic shelf and the Sakhalin shelf” Russian President Vladimir Putin said.
Chinese thirst for Russian energy has been growing non-stop and increased by 20 percent over the past summer. In this context, the Great Hall of the People, Beijing, witnessed the historic sign of a memorandum of strategic cooperation between Gazprom and China National Petroleum Corporation during a recent visit of President Vladimir Putin to China. It extends their collaboration not only in the supply of oil and gas but also post services and various other areas.
The recent memorandum consolidates their strategic cooperation and initially applicable to the next five years. In May 2014, Russia and China have made a breakthrough in the gas supply through the ‘Power of Siberia’ deal. It plans to supply 38 billion cubic meters of gas via ‘eastern’ route for the next thirty years. This time, Sakhalin would be the energy resource base to supply gas from the Far East- ‘Power of Sineria-2’.
However, the total volume and timing of this new supply chain are yet to be decided. All these developments show the resolve of Russian pivot to Asia, where current oil market is not posing serious threats to the Russian intentions as mentioned in a Bloomberg survey, while China is a priority partner in the Arctic region for Russian moves. However, it does not mean that there is no problem at all.