Sino-Russian natural gas trade finalized contract in June

Abstract Chinese President Xi Jinping ended his state visit to Russia on the 24th. During Xi Jinping's visit to Russia, China and Russia signed a series of documents to deepen energy cooperation. The Sino-Russian gas trade negotiations also made unexpected progress. It is reported that China and Russia plan to knock in June this year...
Chinese President Xi Jinping ended his state visit to Russia on the 24th. During Xi Jinping's visit to Russia, China and Russia signed a series of documents to deepen energy cooperation. The Sino-Russian gas trade negotiations also made unexpected progress. It is reported that China and Russia plan to finalize the legally binding conditions for exporting Russian natural gas contracts to China in June this year. Before the end of the year, China and Russia are expected to talk about prices and sign long-term contracts.
For a long time, negotiations on natural gas imports between China and Russia have been deadlocked, and the breakthrough in this negotiation is expected to ease the pressure on China's natural gas imports.

Natural gas dependence on natural gas is nearly 30%

According to the 2012 natural gas industry operation brief published by the National Development and Reform Commission in January this year, China's domestic natural gas production in 2012 was 107.7 billion cubic meters, up 6.5% year-on-year, and natural gas imports (including liquefied natural gas) 42.5 billion cubic meters, up 31.1%. Apparent consumption was 14.71 billion cubic meters, an increase of 13.0%.
It can be seen that China's external dependence on natural gas in 2012 was 28.9%, up 4.6 percentage points year-on-year. Zhuo Chuang Information Natural Gas analyst Li told reporters that more than 70% of China's natural gas is self-produced, mainly distributed in the northwest and southwest regions, and the proportion of offshore oil and gas fields is very low.

In the memorandum signed between the Russian natural gas industry company and China National Petroleum Corporation, it is clear that starting from 2018, Russia will provide China with 38 billion cubic meters of natural gas per year, and this number can be increased to 60 billion cubic meters after consultation. Meter. .

After many years, the supply of natural gas on such a scale will improve China's energy structure, but it will be followed by the situation of domestic natural gas prices.

Zhuo Chuang Information Natural Gas analyst Li believes that in the long run, natural gas prices will be a rising trend in the future.

According to Li’s analysis, “China’s natural gas price is currently between 2-3 yuan per cubic meter, while the cost of natural gas imported from Central Asia to Xinjiang is 2.5 yuan per cubic meter, which does not include Other expenses, so imported natural gas must be at least 5 to 1 yuan upside down. And we import more than 4 LNG (liquefied natural gas) per cubic meter, so the more imports will make the domestic price rise faster."

The reporter learned that the current price of natural gas in China is subject to government-guided pricing, and the reform of natural gas prices has long been called for by the market for a long time. Earlier media reports said that the plan for natural gas price adjustment has been initially formulated and approved by the National Development and Reform Commission and the State Council, and then released nationwide.

From the current point of view, the expectation of rising natural gas prices in the future is also relatively strong. Many experts and analysts have said that China's natural gas prices have been depressed for a long time, low-priced domestic gas and high-priced imported gas are pricing in parallel, and natural gas price adjustment is already in place. It must be done.

Clear timetable for price negotiations

For a long time, it is difficult to make a big breakthrough in the Sino-Russian gas trade negotiations. The main reason is that the price has not been negotiated. President Xi Jinping’s trip to Russia has promoted the progress of China-Russia gas negotiations and set a timetable for price negotiations.

According to the "Liberation Daily" report, Sun Yongxiang, a researcher at the Eurasia Institute of the Development Research Center of the State Council, said that the "qi" should be finally negotiated and the price is still "tangled." The Chinese asking price is about US$100 lower than the Russian side per thousand cubic meters. Coupled with the diversification of energy cooperation between the two countries, the two sides compete in price negotiations with a third party. China has obtained a lower price in Central Asia, while Russia’s Independent reported that South Korea is willing to accept Russia’s higher gas prices, and Russia and Japan signed a memorandum on the construction of a liquefied gas production base. In order to finally settle the dust, it is necessary for China and Russia to seek solutions from the height of strategic cooperation.

On March 23, Alexei Miller, president of Gazprom, said that the two countries plan to finalize the legally binding conditions for exporting Russian natural gas contracts to China in June this year. Before the end of the year, China and Russia are expected to talk about prices and sign long-term contracts. Zhuo Chuang Information Gas Industry analyst Li told reporters that the biggest breakthrough between Sino-Russian natural gas is to list the timetable for price negotiations, and the final answer will be given before the end of 2013.

At the same time, the Russian natural gas industry company signed a memorandum with China National Petroleum Corporation, in which it stated that the priority of Russian natural gas exports to China is the east line of the “Siberian Power” natural gas pipeline, and the long-term contract term is 30. In the year, gas supply began in 2018, with an annual gas supply of 38 billion cubic meters, which can be increased to 60 billion cubic meters after consultation.

Li said that the memorandum in the memorandum had been confirmed before the year of supplying 38 billion cubic meters of gas to China, and this time it was mainly confirmed in the form of a memorandum.

It is reported that if China's two imported natural gas pipelines from Russia and Russia are completed, it will bring China's natural gas supply of 68 billion cubic meters per year. Because China's current annual consumption of natural gas is 140 billion cubic meters, the Sino-Russian gas trade once Implementation, its benefits can be imagined.

Li told reporters that China's current natural gas imports have always had two forms of land-based imports and maritime imports, and the import of natural gas from Russia is more conducive to the transfer of China's industry to the central or western or northeast, and will also greatly improve China's energy. Consumption structure.

Russia first agreed to grant rights to Hua Oilfield

In addition, the Russian oil company recently reached a strategic cooperation agreement with PetroChina on geography research and exploration, mining and sales of oil and gas, and jointly developed oil fields in Russia. This is the first time Russia has agreed to grant Chinese oilfield rights.

Russian oil company president Xie Qin and Sinopec chairman Fu Chengyu also signed a comprehensive memorandum of understanding on Friday (March 22), stipulating the expansion of cooperation between the two companies, involving oil and gas exploration and mining, petroleum processing and petrochemical, liquefied petroleum gas In the field of processing, there are also areas for exporting crude oil, petroleum products to China, and exporting LNG in the future. At the same time, considering the possibility of Sinopec participating in the Eastern Petrochemical Company, it will continue exploration cooperation on Udmurt and the “Sahalin 3” project, and may also sign an oil export contract with Sinopec in the future.

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