The hottest natural gas negotiation between China

It is the general trend that China and Russia reach a final agreement in natural gas negotiations, but it will take time

it is the general trend that China and Russia reach a final agreement in natural gas negotiations, but it will take time

May 21, 2014

[China paint information] during the China Russia high-level meeting being held in Shanghai, the highly concerned China Russia east line natural gas project did not sign a final agreement. Analysts pointed out that the final agreement is the general trend, but it still needs some time

in the talks between the leaders of the two countries, Russia said that the two sides have made important progress in the price negotiations on the eastern route natural gas project and are willing to reach a final agreement with China as soon as possible on the principle of mutual benefit

the joint statement signed by China and Russia on the 20th proposed to establish a comprehensive energy partnership, further deepen the package cooperation in the oil field, start Russia's supply of natural gas to China as soon as possible, expand cooperation in the coal field by developing coal mines in Russia and developing transportation infrastructure, actively study the construction of new power generation facilities in Russia, and expand power exports to China

in September 2013, CNPC and Gazprom signed a framework agreement on the supply of natural gas to China through the eastern pipeline. The pipeline will supply 38billion cubic meters of gas to China every year and is expected to start supplying gas in 2018

this pipeline, together with the China Russia crude oil pipeline that has been put into operation, will constitute the main natural gas import artery on the Northeast strategic artery of China's oil and gas import

"the difficulty of Sino Russian natural gas trade negotiation is not only the price, but also how to determine the natural gas pricing formula, whether it is linked to the oil price or the regional liquefied natural gas (LNG) price, and whether to consider the prepayment factor." Feng Yujun, director of the Russian Institute of the Chinese Academy of modern international relations, said

the Sino Russian natural gas trade negotiation has gone through more than ten years since it was launched. The direction of pipelines, the implementation of resources, and even how to determine the price have become the focus of negotiations. During this period, the international geopolitical pattern changed constantly, the international energy market changed dramatically, and the internal and external factors of China and Russia also changed greatly

"in the process of quarterly maintenance, one is one of the world's largest natural gas exporters, and the other is the natural gas market with the greatest potential. There is a strong complementary relationship between China and Russia, but this does not mean that price negotiations can be easily reached." Liu Yijun, a professor at China University of petroleum, pointed out that the Sino Russian natural gas trade negotiation involves the competition for the pricing power in the Asia Pacific market and will have an important impact on the future natural gas pricing mechanism in the Asia Pacific region. From the perspective of the overall environment, the international community should avoid improper operation. As for the destruction of equipment, the natural gas market is undergoing drastic changes, but the pattern is not yet fully clear, and both sides still have certain strategic wait-and-see considerations

in order to control severe air pollution, clean natural gas has become an important choice for China to promote the transformation of energy consumption structure. According to the statistics of China Petroleum Institute of economics and technology, in 2013, China's apparent consumption of natural gas reached 167.6 billion cubic meters, with a year-on-year increase of 13.9%. The following technical parameters of the sling experimental machine are provided to you, becoming the third largest natural gas consumer in the world. Natural gas imports increased 25% year-on-year to 53billion cubic meters. The degree of external dependence reached 31.6%

for Russia, the sharp rise in shale gas production in North America has impacted Russia's pipeline natural gas in the traditional European market. Russia's long-standing consensus on pricing linked to oil prices and whether to pay or not tends to weaken. Russia is gradually turning its attention to the Asia Pacific market

from the perspective of the international natural gas market, in recent years, the global "shale gas revolution", represented by North America, has brought profound changes to the international energy pattern. The international natural gas market has begun to change from a seller's market to a buyer's market, and the previously separated, non subordinate and lack of unified operation of the split market has gradually moved towards integration

chenweidong, chief energy researcher of the Energy Economics Research Institute of China National Offshore Oil Corporation, pointed out that today, with the transformation of energy and energy diversification, the United States has changed from a natural gas importer to a natural gas exporter. Iraq's oil production has increased, Iran's sanctions have been loosened, North America's oil sands and deep-water oil fields have been developed, and China and other countries have made great efforts to develop unconventional oil and gas resources such as shale gas and coalbed methane, Will gradually change the overall pattern of global oil and gas supply

for China, the domestic natural gas price has not been fully marketized, which makes the Chinese market less tolerant of natural gas prices. If Russia hopes to share the pricing level similar to that in Europe in the Asia Pacific market, it is difficult to achieve from the perspective of regional economic development. Moreover, the speed control is not accurate

it is clear that in the future international natural gas market, the market power will be stronger and stronger, and the natural gas market will depend not only on the seller, but also on the buyer. Both buyers and sellers face diversified choices, and the market will be the dominant force

"the proposal of establishing a comprehensive energy cooperation partnership between China and Russia shows that the desire for energy cooperation between China and Russia has been further enhanced. However, it is reflected in trade negotiations that we still have to bargain every penny, and ultimately rely on the market to speak. If both sides can start from the overall trend of future changes in the international energy pattern, China Russia energy cooperation will be more strategic, long-term and more stable." Feng Yujun said