Published Date : Sep 08, 2015
China has shown remarkable progress in the global energy market. The nation has shown tremendous progress in both energy sectors the coal-powered one and the renewable one. Furthermore, China’s efforts to reduce its carbon emissions has been applauded by many countries as well. With the rapidly growing market in China, many countries have made deals with the country. China has made significant deals with its neighboring countries for mutual leverage.
Take the example of the recent China-Russia deal. This deal is considered to be one of the most notable deals. In this agreement, Russia’s second biggest gas company Novatek will obtain a stake of 9.9 per cent in China’s Silk Road Fund’s project called Yamal Liquefied Natural Gas project. Around 30 cooperation documents and around several energy deals were signed between Russia and China a few days back, and the Russian President, Mr. Vladimir Putin was present in Beijing to attend the celebrations of China’s V-J Day.
The Yamal project marks the first time the Fund for Silk Road will be invested in Russia. The firm Novatek currently owns 60 per cent of the project’s shares and the French firm TOTAL and the Chinese firm Petroleum Corp. own 20 per cent each. Over US$10 billion have been invested in this project. Russia’s top gas company also signed a memorandum of understanding with China National Petroleum Corporation for Russia to supply China with gas from the far east part of the country.
Moreover, the Russian oil firm called Rosneft was also part of the signing of framework agreement with the firm ChemChina to buy a stake of 30 per cent in this Chinese company. Rosneft also signed an agreement that offered Sinopec a joint development deal of Russia’s Yurubcheno Tokhomskoye oil fields. The company Sinopec entered into a tactical investment treaty with Sibur which is a Russian petrochemical group