Support The Moscow Times!

Russia-China Energy Trade to Quadruple By 2025

Energy trade between Russia and China could quadruple by 2025, consulting firm Wood Mackenzie forecasts.

In a report released last week, the firm said Russia could be selling more than 100 million metric tons of oil to China within 12 years.

Wood Mackenzie said the two countries had already reached an agreement for the supply of oil, coal and power and expected a more difficult deal would be struck in the next two years on the supply of natural gas.

Keen to secure the large volumes of energy that neighboring Russia can provide, China is providing financing to underpin much of the required infrastructure costs like it did for the Eastern Siberia Pacific Ocean pipeline.

The recent acquisition of a 20 percent stake in Russia's Yamal LNG project by China National Petroleum Corporation is seen as a symbol of increasing cooperation between the two countries.

Wood Mackenzie warned, however, that negotiating the future terms of cooperation between Russian and Chinese companies could prove more difficult.

"If large projects are to be realized, Russia may have to allow deeper Chinese involvement, for which there is little historical precedent," Ian Thom, the company's head of Russia upstream research, said.

Read more

Independent journalism isn’t dead. You can help keep it alive.

The Moscow Times’ team of journalists has been first with the big stories on the coronavirus crisis in Russia since day one. Our exclusives and on-the-ground reporting are being read and shared by many high-profile journalists.

We wouldn’t be able to produce this crucial journalism without the support of our loyal readers. Please consider making a donation to The Moscow Times to help us continue covering this historic time in the world’s largest country.