Post sponsored by

MIL OSI Translation. Region: Russian Federation –

The Vice Prime Minister made a presentation at the third Russian-Chinese Energy Business Forum. Alexander Novak spoke about bilateral cooperation between Russia and China in the energy sectors, the prospects for the development of the Russian fuel and energy complex and the attraction of foreign investment in the industry.

Alexander Novak made a presentation at the third Russian-Chinese energy business forum

Deputy Prime Minister Alexander Novak made a presentation at the third Russian-Chinese energy business forum. Alexander Novak spoke about energy cooperation between Russia and China, the prospects for the development of the Russian fuel and energy complex until 2035 and the principles of state regulation of foreign investment in the industry.

Cooperation between Russia and China in the fuel and energy complex has been successfully developing over the past decade and has reached an unprecedented high level thanks to the joint efforts of the leaders of the countries.

“Today’s forum has become a logical continuation of the growth and expansion of interaction between our states at all levels, the desire of the business circles of our countries to find new growth points, to implement new ideas and projects for the benefit of the peoples of our countries. Today, both Russia and China are confidently overcoming the negative economic consequences of the pandemic. We see a significant potential for expanding partnership relations between Russia and China, ”noted Alexander Novak.

The Deputy Prime Minister spoke about the cooperation of countries in each of the energy sectors. In the oil industry, Russia has significantly strengthened its position in the Chinese market – oil exports to China have grown more than sixfold over the past 10 years. Joint projects are underway to develop oil reserves – the domestic company Rosneft and the Chinese Sinopek have launched the Udmurtneft project for the production of crude oil, natural and associated petroleum gas.

“As for pipeline gas, at the end of November this year, the total volume of Russian natural gas supplies to China via the eastern route exceeded 13.4 billion cubic meters. m. Now the possibilities of alternative routes for gas supplies to the PRC are being studied, “the Vice Premier said.

At the same time, one of the promising areas of cooperation between the countries is the deep processing of hydrocarbons. The Novatek company is already working in this direction together with the China National Oil and Gas Corporation and the Silk Road Fund on the Yamal LNG project. In addition, cooperation between the Sibur and Sinopek companies has begun on the construction of the Amur gas chemical complex.

Coal supplies to China are also growing. “In the first nine months of 2021, supplies of Russian coal to China have already exceeded 42 million tons, which is 65% more than the same period last year,” said Alexander Novak.

In addition, Inter RAO and the GEC of China are considering the possibility of further increasing the volume of electricity exports from Russia to China.

According to the Deputy Prime Minister, Russian companies are showing great interest in the development of projects in China. In May 2021, Rosatom began work on the construction of new units in China at the Tianwan NPP and Xudapu NPPs, as well as a Chinese demonstration fast neutron reactor. Significant prospects are associated with the construction of hydroelectric power plants in the country and with joint projects in the field of carbon-free hydrogen energy, added Alexander Novak.

Turning to the priorities of the Russian energy policy, the Deputy Prime Minister noted that Russia is a recognized leader in the world energy sector. “We are simultaneously aimed at preserving the potential of traditional branches of the fuel and energy complex and accelerating the development of new directions. Russia possesses huge reserves of oil and gas; at the current production levels in Russia, the supply of oil reserves is about 30 years, gas reserves – about 50 years. In the coming years, these resources will be in demand in the energy markets. Let me emphasize that natural gas, including LNG, is regarded as the cleanest fossil fuel. State measures to support the petrochemical industry in Russia will allow Russia to move to the fifth place in the world market for ethylene production by 2030 and increase the volume of investments in the industry to 4 trillion rubles, ”he stressed.

To maintain leadership in the energy market in the context of decarbonization, it is planned to develop new areas: solar and wind energy, the nuclear industry, and hydrogen production.

“The share of hydrogen in the global energy balance by 2050, according to various estimates, may increase significantly. Our country has important competitive advantages for the development of hydrogen energy and plans to become one of the world leaders in its production, ”said Alexander Novak.

At the same time, the Deputy Prime Minister noted that the rejection of traditional energy sources should not be abrupt. “This could seriously damage the energy security of the entire world. This is confirmed by the energy crises that we see today in different parts of the planet. We stand for a rational and balanced approach to this issue, ”said Alexander Novak.

In general, the Russian fuel and energy complex remains a highly attractive industry for foreign investment, the Deputy Prime Minister said. “The annual investment in the Russian fuel and energy complex reaches 5 trillion rubles. The positive forecasts for the development of the Russian economy are confirmed by international organizations. In particular, following the World Bank in October, the International Monetary Fund also raised its estimate of Russia’s economic growth in 2021. Business activity is recovering. Further economic growth will be directly related to restarting the investment cycle – this is the task set by the President of the Russian Federation within the framework of national development goals for the next 10 years, ”the Deputy Prime Minister concluded.

EDITOR’S NOTE: This article is a translation. Apologies should the grammar and or sentence structure not be perfect.

MIL OSI Russia News