The Russian energy giant said on Wednesday that it has built 93 percent of the Siberian Power pipeline, part of an agreement between Russia and China.
“In the section of the Siberian Power pipeline from Yakutia to the border between Russia and China, 2,010 kilometers of pipes were connected and installed, which corresponds to 93% of the total extension,” the statement said.
The company also added that construction of the underwater dual line of Siberia Power crossing the Amur River continues with 78% of the works completed.
In 2014, Gazprom signed a 30-year agreement with China’s National Petroleum Corporation, establishing delivery of 38 billion cubic meters of Russian gas through the Siberia Power pipeline.
The pipeline will also transport gas from Irkutsk and Yakutia production centers to consumers in Russia’s far east.
Meanwhile, about 40 percent of China’s oil consumes comes from the Middle East, which accounts for Beijing’s close attention to this region of the world. In this context, US sanctions against Iran are very advantageous for the Asian giant.
In August, the French company Total officially left Iran after failing to persuade Washington to allow it to work with Iranian companies, leaving a large stake free in one of the world’s largest gas fields, South Pars. There is no doubt that China National Petroleum Corporation (CNPC) will do its utmost to obtain Total shares, according to Russian columnist Expert Sergei Manukov.
Due to recent US sanctions, few companies want to acquire the assets and, furthermore, Tehran’s dependence on Beijing has increased further. It is from China, the largest importer of Iranian oil, which will largely depend on the effect of the sanctions, says Expert analyst.
In recent years, Chinese energy companies have invested several billion dollars in assets in Iraq, the United Arab Emirates and Iran. Chinese companies show keen interest in Saudi Arabia and Qatar’s energy resources, as well as the modernization of an Iranian oil refinery, assessed at $ 1.5 billion.
While the positions of American and European companies in the Middle East remain strong, there are many factors besides the sanctions that benefit China, the columnist believes.