10.1.1 Russia
Energy exports are an important industry that
shore up the Russian economy. Before 2011,
Russia’s oil and gas exports to Asia-Pacific
countries accounted for only 3% and 5%
respectively of its total hydrocarbon exports.
The US and European economic sanctions
against Russia accelerated its energy cooperation
with Asia-Pacific. With their agreement on joint
energy cooperation, China and Russia established extensive cooperation in oil, natural gas,
nuclear power, electric power, coal and other
areas. Russian oil is mainly transported by sea,
rail and pipeline to China. As China borders on
Russia, road and pipeline transport are the most
cost-effective and safest ways of trading oil and
natural gas. The China-Russia Energy Cooperation Committee (formerly the Energy Negotiation Mechanism at Vice Premier Level)
established a new high-level platform for
China-Russia energy cooperation.
Energy cooperation between China and Russia focuses on oil trade. In 2015, China became
the largest buyer of Russian oil. According to
China’s General Administration of Customs, in
2016 Russia replaced Saudi Arabia for the first
time as China’s largest supplier of crude oil. In
2016, China imported 381 million tonnes of
crude oil, an increase of 13.57% over the previous year, and its imports from Russia rose by
almost 25% to 1.05 million barrels per day.
China-Russia energy investment and technology
cooperation has been upgraded from direct trade
to joint exploration, joint development and
benefit-sharing, cooperation across the value
chain, and from upstream to downstream areas.
By way of new joint ventures and share acquisitions, China has been gradually participating in
Russia’s crude oil refining, refined oil product
processing, liquefied natural gas processing, oil
and gas sales and other areas. In the future, China
will expand into fields like technology research
and development, equipment manufacturing and
engineering services.
10.1.2 Middle East
The Middle East comprises 17 countries,
including Saudi Arabia, the United Arab
Emirates, Iran, Iraq and Israel. It is an important
hub between the west and the east and a point
where the Silk Road Economic Belt and the 21st
Century Maritime Silk Road meet.
China-Middle East energy cooperation is one
of the keys to China’s energy security. As China’s economy and energy demand grow, energy
cooperation will be one of the most strategic
areas in China-Middle East relations.
China started to import petroleum and related
products from the Middle East in the 1990s.
Gradually, the Middle East became China’s largest source of oil imports. From 1996 to 2009,
China’s crude oil imports from the Middle East
accounted for 45-50% of China’s total oil
imports. In 2011, China imported about 130
million tonnes of crude oil from the Middle East,
accounting for more than 50% of total imports
that year. In 2013, imports reached 146.54 million tonnes or 52% of total imports. In 2014,
crude oil imports from the Middle East increased
to 171.7 million tonnes, which was 46% of the
total.
Cooperation on oil and gas between China
and the Middle East countries has made
remarkable progress. CNPC, Sinopec and
CNOOC have developed many large oil field
projects in Iran and Iraq. In particular, China-Iran
oil and gas cooperation has great potential in
dozens of large oil and gas fields, and in auxiliary
project construction, engineering and technical
services. In addition, China also cooperates with
Middle East countries on training in clean
energy.
The Belt and Road Initiative offers valuable
opportunities for cooperation between China and
the Middle East. Responding to the initiative and
strengthening the cooperation with China will
help Middle East countries develop their
domestic economies. In addition, the region’s
petroleum exporting countries depend more on
the Chinese market during low oil price cycles,
which makes cooperation even more attractive.
10.1.3 Central Asia
The five countries of central Asia (Kazakhstan,
Turkmenistan, Uzbekistan, Kyrgyzstan and
Tajikistan) are a hub for the Silk Road Economic
662
W. Jigang and P. Webb
Energy exports are an important industry that
shore up the Russian economy. Before 2011,
Russia’s oil and gas exports to Asia-Pacific
countries accounted for only 3% and 5%
respectively of its total hydrocarbon exports.
The US and European economic sanctions
against Russia accelerated its energy cooperation
with Asia-Pacific. With their agreement on joint
energy cooperation, China and Russia established extensive cooperation in oil, natural gas,
nuclear power, electric power, coal and other
areas. Russian oil is mainly transported by sea,
rail and pipeline to China. As China borders on
Russia, road and pipeline transport are the most
cost-effective and safest ways of trading oil and
natural gas. The China-Russia Energy Cooperation Committee (formerly the Energy Negotiation Mechanism at Vice Premier Level)
established a new high-level platform for
China-Russia energy cooperation.
Energy cooperation between China and Russia focuses on oil trade. In 2015, China became
the largest buyer of Russian oil. According to
China’s General Administration of Customs, in
2016 Russia replaced Saudi Arabia for the first
time as China’s largest supplier of crude oil. In
2016, China imported 381 million tonnes of
crude oil, an increase of 13.57% over the previous year, and its imports from Russia rose by
almost 25% to 1.05 million barrels per day.
China-Russia energy investment and technology
cooperation has been upgraded from direct trade
to joint exploration, joint development and
benefit-sharing, cooperation across the value
chain, and from upstream to downstream areas.
By way of new joint ventures and share acquisitions, China has been gradually participating in
Russia’s crude oil refining, refined oil product
processing, liquefied natural gas processing, oil
and gas sales and other areas. In the future, China
will expand into fields like technology research
and development, equipment manufacturing and
engineering services.
10.1.2 Middle East
The Middle East comprises 17 countries,
including Saudi Arabia, the United Arab
Emirates, Iran, Iraq and Israel. It is an important
hub between the west and the east and a point
where the Silk Road Economic Belt and the 21st
Century Maritime Silk Road meet.
China-Middle East energy cooperation is one
of the keys to China’s energy security. As China’s economy and energy demand grow, energy
cooperation will be one of the most strategic
areas in China-Middle East relations.
China started to import petroleum and related
products from the Middle East in the 1990s.
Gradually, the Middle East became China’s largest source of oil imports. From 1996 to 2009,
China’s crude oil imports from the Middle East
accounted for 45-50% of China’s total oil
imports. In 2011, China imported about 130
million tonnes of crude oil from the Middle East,
accounting for more than 50% of total imports
that year. In 2013, imports reached 146.54 million tonnes or 52% of total imports. In 2014,
crude oil imports from the Middle East increased
to 171.7 million tonnes, which was 46% of the
total.
Cooperation on oil and gas between China
and the Middle East countries has made
remarkable progress. CNPC, Sinopec and
CNOOC have developed many large oil field
projects in Iran and Iraq. In particular, China-Iran
oil and gas cooperation has great potential in
dozens of large oil and gas fields, and in auxiliary
project construction, engineering and technical
services. In addition, China also cooperates with
Middle East countries on training in clean
energy.
The Belt and Road Initiative offers valuable
opportunities for cooperation between China and
the Middle East. Responding to the initiative and
strengthening the cooperation with China will
help Middle East countries develop their
domestic economies. In addition, the region’s
petroleum exporting countries depend more on
the Chinese market during low oil price cycles,
which makes cooperation even more attractive.
10.1.3 Central Asia
The five countries of central Asia (Kazakhstan,
Turkmenistan, Uzbekistan, Kyrgyzstan and
Tajikistan) are a hub for the Silk Road Economic
662
W. Jigang and P. Webb