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Construction begins on China-Russia pipeline project under Yangtze River

China officially began the world’s largest tunnel construction under a major river on Tuesday, kick starting the construction of the 1,509-kilometer-long southern Chinese section of the China-Russia east-route natural gas pipeline.

The tunnel under the Yangtze River is a key project of the southern Chinese section of the pipeline, which will connect Yongqing in North China’s Hebei Province with the economic hub of Shanghai.

The China Oil & Gas Piping Network Corporation, the national oil and gas pipeline company launched late last year, said that after the key project is completed by June 2025, annual throughput will reach 18.9 billion cubic meters per year. 

Energy traffic in the Yangtze River Delta will be immensely improved, with imported Russian natural gas meeting civilian and industrial demand in the region, the company said. 

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Russia Delivers First Arctic Oil To Key Ally China

https://oilprice.com/Energy/Crude-Oil/Russia-Delivers-First-Arctic-Oil-To-Key-Ally-China.html

Last week saw Russia’s Gazprom Neft, the country’s third biggest oil company by output and the oil arm of state gas giant Gazprom, ship its first cargo of oil produced in the Arctic to China via the Northern Sea Route (NSR). This shipment East adds to its existing Western exports via the NSR to Europe. According to Gazprom Neft, it took 47 days to deliver a full cargo of 144,000 tonnes of sweet, light Novy Port oil from the Yamal peninsula developments to the Chinese port of Yantai on the Bohai Sea, from Russia’s north-western city of Murmansk. “Successful experience in the sale of Arctic oil in the European market and an in-depth insight of Asia-Pacific markets allow Gazprom Neft to offer Novy Port oil with a unique year-round logistics scheme to Asian partners,” said Gazprom Neft’s deputy director general for logistics, processing and sales, Anatoly Cherner, last week.

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Construction of a natural gas storage cluster has begun in western China

https://www.globaltimes.cn/content/1186133.shtml#:~:text=Gallery-,Construction%20of%20first%20gas%20storage%20cluster%20begins%20in%20western,total%20investment%20nearly%20%241%20billion&text=The%20construction%20of%20China’s%20first,billion%20yuan%20(%24990%20million). Construction of a natural gas storage cluster has begun in western China, with total investment reaching nearly $1 billion. The project will promote China’s natural gas storage capacity, which is far below the international standard of 12-15%.

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Russia Eyes Another Massive Gas Pipeline To China

Russia Eyes Another Massive Gas Pipeline To China 7-8-20 https://oilprice.com/Energy/Natural-Gas/Russia-Eyes-Another-Massive-Gas-Pipeline-To-China.html

Gazprom and Moscow have been pushing for the ‘Power of Siberia-2 pipeline’ from Western Siberia to China’s Xinjiang region. The proposal has been met with a lukewarm response from Beijing because the region is already well-supplied with Central Asian gas. However, due to the Coronavirus pandemic and Gazprom’s adjusted plan, the Power of Siberia-2 project is gaining momentum.

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China Inks Military Deal With Iran Under Secretive 25-Year Plan

https://oilprice.com/Energy/Energy-General/China-Inks-Military-Deal-With-Iran-Under-Secretive-25-Year-Plan.html?fbclid=IwAR0mHzlcDcEdzpugzKZp7x0N4sO0J6efEoCC7xIDZeS8LqLv8lVoW-0LCrM One of the secret elements of the deal signed last year is that China will invest US$280 billion in developing Iran’s oil, gas, and petrochemicals sectors. This amount will be front-loaded into the first five-year period of the new 25-year deal, and the understanding is that further amounts will be available in each subsequent five year period, provided that both parties agree. There will be another US$120 billion of investment, which again can be front-loaded into the first five-year period, for upgrading Iran’s transport and manufacturing infrastructure, and again subject to increase in each subsequent period should both parties agree. In exchange for this, to begin with, Chinese companies will be given the first option to bid on any new – or stalled or uncompleted – oil, gas, and petrochemicals projects in Iran. China will also be able to buy any and all oil, gas, and petchems products at a minimum guaranteed discount of 12 per cent to the six-month rolling mean average price of comparable benchmark products, plus another 6 to 8 per cent of that metric for risk-adjusted compensation. Additionally, China will be granted the right to delay payment for up to two years and, significantly, it will be able to pay in soft currencies that it has accrued from doing business in Africa and the Former Soviet Union states. “Given the exchange rates involved in converting these soft currencies into hard currencies that Iran can obtain from its friendly Western banks, China is looking at another 8 to 12 per cent discount, which means a total discount of around 32 per cent for China on all oil gas, and petchems purchases,” one of the Iran sources underlined.

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China imported 5.16 million tons of crude oil from Saudi Arabia

China imported 5.16 million tons of crude oil from Saudi Arabia in April, touching a record low from 2019 May. This is puzzling, with the low price, one would think China would import a lot of crude. What is happening?  Perhaps this is one of the reasons? 100 million tons of oil reserves were detected in CNOOC-owned Kenli 6-1 oilfield. It is the first 100 million-ton oilfield in Bohai Bay area, guaranteeing China’s energy security and boosting the economy of regions around the sea.

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ExxonMobil breaks ground on its ethylene project in Huizhou

https://www.yicaiglobal.com/news/exxonmobil-usd10-billion-ethylene-plant-breaks-ground-in-south-china ExxonMobil breaks ground on its ethylene project in Huizhou, South China’s Guangdong Province, 4-22-20 during a teleconference. The project is the first wholly-owned petrochemical project invested by an American company in China, with a price tag of $10 billion.

The ethylene plant project invested in by US oil and gas giant Exxon Mobil in Huizhou in China’s southern Guangdong province, which is one of China’s national major foreign investment projects valued at USD10 billion, started construction in Huizhou Dayawan Petrochemical Industrial Park yesterday, various media reported.

Construction of the ethylene plant will unfold in two phases, with the first stage erecting an annual 1.6 million-ton capacity ethylene cracker, which is projected to finish and start operation in 2023. The project will ease China’s short supply of polyolefin used to make plastic film, and free it from over-reliance on imports of the high-performance polymer, per the reports.

Exxon Mobile chose Dayawan as the site as it is one of China’s seven main bases for the petrochemical industry and is well equipped with infrastructure and public support facilities. It also boasts a good business environment with highly efficient government and correspondingly huge support for the growth of overseas investment, said Fernando Vallina Bobes, chairman of Shanghai-based ExxonMobil China Investment.

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