Despite the collapse of oil price, Russian gas cooperation with China has laid out the crucial foundation for Russia's Asian energy strategy. While the Sino-Russian gas deal signed in May 2014 was partly the consequence of the Ukraine crisis, the agreement of Altai gas pipeline in May 2015 is considered as part of China's One Belt One Road Initiative. They represent a major breakthrough for Russia but is only the first step to facilitate broader cooperation between China, Japan and South Korea. China is a crucial key player in the big picture of Russia's Asian energy strategy but it is also a tough negotiator, particularly in the Sino-Russian gas deal. The Chinese stance towards Russia reflects the difficulty of penetrating the Asian market.
The prospect of Sino-Russian gas cooperation could be very broad and more importantly decades of negotiation, joint projects and interactions have laid the foundation for future cooperation. Russia's energy strategy in Asia has a much broader picture beyond the initial 38 bcm/y pipeline gas to China. Russia needs to treat this window of opportunity seriously in order to carve out a bigger market share from the Asian market in the long term. Despite the low oil price, Asian oil and gas markets have the most potential for Russia because the energy-hungry Asia has created great opportunities for Russia energy export. The gas deal with China is a breakthrough point, but the question for Russia is how to enter the other markets in Asia.
Russia has been striving hard to carve out a niche in Asia's energy market. In the short term, China and Russia are potentially to put their energy cooperation forward and in the long term, transnational oil and gas cooperation would be achieve in Northeast Asian. However, if the two parties do not respect the market or the agreement, the contract is of no significance and the specific cooperative details in the future will change according to the changes of interests of both sides. Only mutual benefit and fairness will ensure that a long-term partnership is maintained. The Asian gas market has bounded to see growing geopolitical and economic competition and Russian policy-makers and businessmen have to treat the opportunity seriously. While oil and gas cooperation will be most beneficial for both sides, Sino-Russian energy cooperation is the key for Russia to acquire maximum political and economic leverage in its eastward energy turn.
|July, 16, 11:05:00|
|July, 16, 11:00:00|
|July, 16, 10:55:00|
|July, 16, 10:50:00|
|July, 16, 10:45:00|
|July, 16, 10:40:00|
AN - China National Offshore Oil Corp. (CNOOC) is willing to invest $3 billion in its existing oil and gas operation in Nigeria, the Nigerian National Petroleum Corporation (NNPC) said on Sunday following a meeting with the Chinese in Abuja.
REUTERS - Production at Libya’s giant Sharara oil field was expected to fall by at least 160,000 barrels per day (bpd) on Saturday after two staff were abducted in an attack by an unknown group, the National Oil Corporation (NOC) said.
IMF - Output grew by 3.8 percent in 2017, underpinned by a resilient non-hydrocarbon sector, with robust implementation of GCC-funded projects as well as strong activity in the financial, hospitality, and education sectors. The banking system remains stable with large capital buffers. Growth is projected to decelerate over the medium term.
IMF - Higher oil prices and short-term portfolio inflows have provided relief from external and fiscal pressures but the recovery remains challenging. Inflation declined to its lowest level in more than two years. Real GDP expanded by 2 percent in the first quarter of 2018 compared to the first quarter of last year. However, activity in the non-oil non-agricultural sector remains weak as lower purchasing power weighs on consumer demand and as credit risk continues to limit bank lending.