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Putin, Xi inaugurate `Power of Siberia` pipeline to boost energy ties

04 December 2019

Chinese President Xi Jinping and Russian leader Vladimir Putin watched via video link as the pipeline was inaugurated, before congratulating each other on an historic moment.

The Russian part of the project, or the 3,000-km Power of Siberia pipeline, is expected to pump 38 billion cubic meters of natural gas from Russia to China annually when it reaches full capacity, under a 30-year agreement between Russia's Gazprom and China National Petroleum Corp.

The exports are projected to generate, over three decades, $400 billion for Russia's coffers.

"Russia is just not exclusively creating new revenue streams, however hedging its bets and bolstering its place strategically", mentioned power analyst Andrew Hill.

Nord Stream 2 will double the amount of natural gas that Russian Federation sells to Germany and that doesn't go through Ukraine.

The mammoth Power of Siberia pipeline connecting the world's top gas exporter and its largest energy importer crowns years of tough negotiations and work in hard conditions.

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Monday's launch cements China as Russia's top export market and comes as Moscow is hoping to launch two other major energy projects - the Nord Stream 2 undersea Baltic gas pipeline to Germany and the TurkStream pipeline to Turkey and southern Europe.

He said the three projects were a sign that the Russian gas industry - "this kingpin of the global gas sector" - was becoming more mature. Construction began later that same year.

Hailing bilateral ties as solid and unbreakable, Patrushev said that Russian Federation and China are comprehensive strategic partners of coordination with strategic significance, and the two countries' cooperation in various fields has reached an unprecedented level.

Meanwhile, Gazprom is working on finalizing another two priority gas pipeline projects.

Russian Federation is competing with the a major gas exporter to the European market, but its prospects have grown clouded in recent years.

The bridge, which is to open next year, will connect the city of Blagoveshchensk and the northern Chinese city of Heihe.

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China is now the world's largest natural gas importer and the second largest liquefied natural gas (LNG) importer.

Lin also said the new energy source was vital from an environmental perspective in terms of pollution reduction, as northeastern China depends largely on coal-fired power plants.

He called on both countries to make the pipeline a safe and green pipeline of development and friendship, ensure the safe operation of the pipeline and boost the sustainable development of the regions along the line.

The Power of Siberia launch came amid continued wrangling over Nord Stream 2.

Meanwhile, Lin said that USA companies continue to suffer "substantial losses" as exports the commodity from the China since April has dropped to zero.

The European Commission's push to rewrite the EU's Third Gas Directive is doomed, but Brussels has not withdrawn its proposal because it is preparing a "grand bargain" with Russian Federation, experts told a EURACTIV event on Wednesday (5 September).

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Putin, Xi inaugurate `Power of Siberia` pipeline to boost energy ties