Putin, Xi launch 鈥榟istoric鈥� Russian gas pipeline to China

An employee checks a gas valve at a compressor station, a part of Gazprom鈥檚 Power Of Siberia gas pipeline, outside the far eastern town of Svobodny, Russia. (Reuters)
  • The project is aimed at cementing Moscow鈥檚 role as the world鈥檚 top gas exporter

MOSCOW: Russia and China on Monday launched a giant gas pipeline linking the countries for the first time, one of three major projects aimed at cementing Moscow鈥檚 role as the world鈥檚 top gas exporter.

Presiding by video linkup over an elaborate televised ceremony, Russian leader Vladimir Putin and Chinese counterpart Xi Jinping hailed the 鈥淧ower of Siberia鈥� pipeline as a symbol of cooperation.

鈥淭oday is remarkable, a truly historic event not only for the global energy market, but first of all for us and for you, for Russia and China,鈥� Putin said.

Xi said the project served as a model of cooperation.

鈥淐hina-Russia relations are entering a new era,鈥� Xi said. 鈥淓veryone worked hard.鈥漈he ceremony featured hard-hatted gas workers and videos showing the pipeline鈥檚 difficult path from remote areas of eastern Siberia to Blagoveshchensk on the Chinese border.

Workers burst into applause and celebratory music played as the CEO of Russian gas giant Gazprom, Alexei Miller, speaking from the Amur region, ordered a valve opened for the gas to flow across the border.

The 3,000-km pipeline 鈥� which Putin has called 鈥渢he world鈥檚 biggest construction project鈥� 鈥� will supply China with 38 billion cubic meters of gas annually when fully operational in 2025.

Russia and China signed the 30-year, $400 billion construction deal in 2014 鈥� Gazprom鈥檚 biggest ever contract.

The pipeline is part of Russia efforts to develop ties with Asia 鈥� in particular top energy importer China 鈥� amid longstanding tensions with the West.

Gazprom stressed that the pipeline ran through 鈥渟wampy, mountainous, seismically active, permafrost and rocky areas with extreme environmental conditions.鈥�

Temperatures along the route plunge to below -60 C in Yakutia and below -40 C in the Russian Far East鈥檚 Amur Region.

Work has also been completed on the first road bridge between Russia and China, further linking the two neighbors.

The bridge, which is to open next year, will connect the city of Blagoveshchensk and the northern Chinese city of Heihe.

Moscow, however, remains a key gas provider to Europe and is also planning to soon launch two more pipelines that will ramp up supplies to the continent while bypassing Ukraine 鈥� TurkStream and Nord Stream 2.

Analysts said the three projects have long-term economic and political benefits for Russia, which has inserted itself between European markets to the west and the rapidly growing Chinese market to the east.

鈥淩ussia is not only creating new income streams, but hedging its bets and bolstering its position strategically,鈥� said energy analyst Andrew Hill.

鈥淭he ability to play one off against the other will not have been lost on either Gazprom or the Kremlin,鈥� Hill, who leads the S&P Global Platts EMEA gas and power analytics team, wrote in a blog.