China starts construction of gas pipeline to Russia

The construction of the Chinese section of the China-Russia East-Route Natural Gas Pipeline has begun, further boosting energy cooperation between the two countries.

The Chinese section of the 3,968-km pipeline originates in the northeastern province of Heilongjiang and terminates in Shanghai in the east.

It is the largest China-Russia cooperation project and is conducive to diversifying both countries' energy strategy and guaranteeing energy security, Chinese Vice Premier Zhang Gaoli said at the construction commencement ceremony on Monday, according to Xinhua news agency.

The construction of the Russian part of the pipeline began in eastern Siberia last September. Negotiations on details for a proposed western route are still underway.

"The construction progress of the east route of the pipeline is of great strategic significance. It lifts China-Russia mutual trust and cooperation to a new height," said Liu Yijun of the China University of Petroleum.

China National Petroleum Corp (CNPC) and Russian gas giant Gazprom signed a deal for the East-Route Gas Project on May 21, 2014. The 30-year contract will see the east-route pipeline begin providing China with 38 billion cubic metres of natural gas annually from 2018.

Under the bilateral agreement, Russia will export 70 billion cubic metres of natural gas to China every year upon completion of both the east and west route gas pipelines.

Strengthening energy cooperation is of great significance to safeguarding the two countries' energy security, said Zhou Dadi, vice director of the China Energy Research Society.

Russia's energy export to Europe is under great pressure due to the impact of the Ukraine crisis, making it look to the east for a solution, said Feng.

To reduce its reliance on coal and combat pollution, China also needed to import more natural gas, he added.

The gas project is a win-win deal for both countries, said Feng Yujun, head of the Russia Research Institute of the China Institutes of Contemporary International Relations.

"The pipeline will provide secure and reliable clean energy for China's economic development and a long-term stable market for the rich natural gas resources in Russia," he said.

The pipeline is also of great significance for the rejuvenation of the traditional industrial base in northeast China and Russia's development of the Far East, Feng added.

Aside from natural gas, the two countries should fully utilise their complementarity advantages to expand all-round cooperation in oil, nuclear energy, coal and electricity. he said.