power-of-siberia

The Chinese President Xi Jinping and his Russian counterpart Vladimir Putin on remotely inaugurated the “Power of Siberia” gas pipeline.

About the “Power of Siberia”

  •  A massive cross-border undertaking not only central to China’s energy security but also for bolstering special ties between Beijing and Moscow
  • The 30-year project is anchored by a $400 billion gas deal.
  • Moscow will supply around 5 billion cubic meters (bcm) of natural gas, but the volume will gradually rise to 38 billion cubic meters per year. Power of Siberia
  • From Siberia to China’s Yangtze River delta in Shanghai, the massive pipeline will cover 8,000 km, with 5,111 km inside China, passing through nine provinces and municipalities.
  • Gas is being sourced from Chayandinskoye and Kovykta fields in eastern Siberia and is then piped to Blagoveshchensk — the last town on the Russian side of the border.
  •  From there, it is tunneled under the Amur River, before entering Heihe on the Chinese side.

Importance of the “Power of Siberia”

  • Till now Russia has been a primary gas supplier to Europe
  • The Power of Siberia is the first cross-border gas pipeline between Russia and China.
  • Amid sanctions from the west, it will add a prominent eastern dimension to Moscow’s energy blueprint. 

India’ traditional advantage over China

  • From a geopolitical standpoint, India had certain advantages over Europe and China as an energy partner for Russia. 
  • New Delhi, unlike many European countries, has no political objections to Russian entities buying shares in their oil companies. 
  • While China has a warm relationship with Russia, it carries more long-term geopolitical risks than India does.
  • India’s good political relationship and Russia want to cement that with a good economic relationship.

 strategy to counter the Russia-Chinese closeness.

  • Moscow and New Delhi adopted a five-year road map to establish a "Far Eastern Energy Corridor" that would boost Russian oil, gas and coal exports to India.
  • Indian to expand investments in Russian oil refining projects, amid political tension in the Middle East that is affecting energy supplies.
  • Indian companies have invested more than $10 billion in major Russian oil projects.

At the Eastern economic forum, china has not shown a keen interest in the far east. India, on the other hand, can leverage the long-lasting friendship in exploring new resources to fuel its economy at the same time maintain the balancing act.

Source:https://www.thehindu.com/business/Economy/putin-xi-launch-landmark-russian-gas-pipeline-to-china/article30137425.ec