World Trade plays the most important role in today’s global economy and in the times when many big nations conflict with each other, there is always a scope for new associations. Averting the role and hegemony of the United States, Russia seems to have strengthened its agenda of “Look East” after the American sanctions on Ukraine Crisis. This time, Russia and China have forwarded the first step towards energy self-sufficiency. When Oil is regarded as the new gold, the importance of Natural Gas can never be underplayed in substituting the non-renewable energy resources.
The Outlook beyond Europe:
December 2 will be the witness to a historic event when Russia will start looking beyond making ties with Europe alone. The Altai gas pipeline of almost 3000 kilometers linking natural resources-rich Siberia and North-Western China will make Russia’s first big project in the East. The inaugural event will be chaired by Russian President Vladimir Putin and Chinese President Xi Jinping.
This ambitious plan has a target of holding a capacity of as high as 38 billion cubic meters by 2025 and it will pump blue fuel through Russian settlement of Far East, finally reaching Chinese border towns. This pipeline project saw the first daylight when Russian state-run Gazprom inked a 30 year, 400 billion USD deal in 2014 with Chinese public oil corporation, CNPC (China National Petroleum Corporation).
As of now, no news of other terms of gas transfer, including the pricing terms have been made public by these two companies. It should be noted that Russia is leaving no stones unturned, taking advantage of dilapidated Sino- American ties due to the recent trade war.
Russian official spokesperson Dmitry Peskov said, “The implementation of such cross-regional projects inside the country definitely promotes development of many regions: regions receiving such a facility on their territory will subsequently receive additional infrastructure, additional jobs.”
Dmitry also added that the initiation of the pipeline project not only opens an opportunity for China but also for many potential gas consumers after the alleged monopoly of few Middle-East countries.
A Win-Win Situation:
This ambitious project possesses a win-win situation for both nations. As China has been reeling under pressure from many nations to cut down its emissions and non-renewable energy consumption, this project will make things smoother. The all-green pipeline project may also help China in negotiating with other major oil-exporting nations. China also may exploit this opportunity to advance its manufacturing sector as this pipeline project will bring many new technologies and processes to the Chinese Land.
For Russia, this project may become a stable earning source of foreign exchange when it is constantly under pressure from American sanctions. This project will help the booming Russian economy; developing its Far East will be another dimension of this project.
The Future:
Looking at the global climatic conditions and change, it is a no-brainer to say that the future lies with renewable energy. This huge gas pipeline project may set an example for many other developing nations to take advantage of unexploited natural gas resources and concrete their stand of climate change.