Belt. They have been an important economic
corridor linking China with Western Asia and
Europe since ancient times.
Central Asia has abundant oil and gas reserves,
ranking third in the world after the Middle East
and Russia. More than 70% of its crude oil output
is exported. In 2015, Kazakhstan produced 85.6
million tonnes of crude oil, of which more than 70
million tonnes went to other countries; Turkmenistan produced 74.16 billion cubic meters of
natural gas and exported more than 50 billion
cubic meters. Since 2000, China and Central Asia
have been deepening their cooperation in oil and
gas trading. Now, China is Kazakhstan’s
third-largest oil importer, and Uzbekistan’s and
Turkmenistan’s largest gas importer. At the end of
the 12th Five-Year Plan (2011–15), China’s oil
and gas imports from Central Asia accounted for
1.85% and 48% respectively of its total oil and gas
imports. Thanks to Central Asia, China’s overseas
energy supply structure has been optimised. China’s main imports from the Central Asian countries are primary energy products. In 2014, for
example, China’s oil and gas imports from Central
Asia accounted for 34% and 36% respectively of
its total imports from this region. At the same time,
China exports to Central Asia processed energy
products and manufactured goods, such as oil
country tubular goods, petroleum machinery and
chemicals, which made up 4.91%, 5.15% and
3.52% respectively of China’s total exports to
Central Asia. China has built power transmission
links and substations, thermal power plants and
other projects for Kyrgyzstan, Uzbekistan and
other Central Asian countries.
In addition to energy trade, China’s cooperation with Central Asia’s energy industry is also
developing from upstream energy exploration
and production to cooperation along the entire
value chain. Future cooperation will prioritise
downstream industries, such as petroleum refining and petrochemicals. In the future, it will be
further extended to energy-related industries like
petroleum equipment manufacturing and production services.
The long-term energy cooperation between
China and the Central Asian countries is based on
mutual trust. The Belt and Road Initiative provides
a new platform and opportunities for diversification. The Central Asian countries can expand into
and build energy export markets in North-east
Asia, South Asia and the Pacific Rim countries.
10.1.4 USA
The USA and China are the world’s largest
energy producers and consumers. The two
countries regarded energy as one of the important
cooperation areas in 1979 when they established
diplomatic relations. Over the past 40 years,
despite differences and obstacles, China and the
USA have been expanding and deepening energy
cooperation and made great progress. Especially
in the 21st century, the USA’s energy independence strategy offers an unprecedented opportunity for China-US energy cooperation against the
background of energy and economic globalisation. The two countries have enormous potential
for cooperation in areas like natural gas, nuclear
power and renewable energy.
Bilateral and multilateral energy cooperation
mechanisms—like the APEC Energy Working
Group, the Asia-Pacific Partnership on Clean
Development and Climate, and the Carbon
Sequestration Leadership Forum—strengthen
China-US cooperation in the energy sector. From
2004, China-US energy policy dialogue became
an important communication channel for the two
governments and a platform for the two countries’ energy sectors to discuss topics like energy
trends, energy efficiency, resource and environmental protection. The U.S.-China Oil and Gas
Industry Forum—co-hosted by China’s National
Energy Administration, the U.S. Department of
Energy and the U.S. Department of Commerce—
has been actively promoting the two countries’
cooperation in oil and gas.
In 2008, the U.S.-China Ten-Year Framework
for Cooperation on Energy and Environment was
signed during the fourth China-U.S. Strategic
Economic Dialogue, making energy cooperation
the focus of the conference for the first time.
10.1.5 South Asia and ASEAN
South Asia covers eight countries, including
India, Pakistan, Bangladesh and Sri Lanka. Five
of the eight countries share a border with China.
Special Report 5: International Energy Cooperation and Governance
663
corridor linking China with Western Asia and
Europe since ancient times.
Central Asia has abundant oil and gas reserves,
ranking third in the world after the Middle East
and Russia. More than 70% of its crude oil output
is exported. In 2015, Kazakhstan produced 85.6
million tonnes of crude oil, of which more than 70
million tonnes went to other countries; Turkmenistan produced 74.16 billion cubic meters of
natural gas and exported more than 50 billion
cubic meters. Since 2000, China and Central Asia
have been deepening their cooperation in oil and
gas trading. Now, China is Kazakhstan’s
third-largest oil importer, and Uzbekistan’s and
Turkmenistan’s largest gas importer. At the end of
the 12th Five-Year Plan (2011–15), China’s oil
and gas imports from Central Asia accounted for
1.85% and 48% respectively of its total oil and gas
imports. Thanks to Central Asia, China’s overseas
energy supply structure has been optimised. China’s main imports from the Central Asian countries are primary energy products. In 2014, for
example, China’s oil and gas imports from Central
Asia accounted for 34% and 36% respectively of
its total imports from this region. At the same time,
China exports to Central Asia processed energy
products and manufactured goods, such as oil
country tubular goods, petroleum machinery and
chemicals, which made up 4.91%, 5.15% and
3.52% respectively of China’s total exports to
Central Asia. China has built power transmission
links and substations, thermal power plants and
other projects for Kyrgyzstan, Uzbekistan and
other Central Asian countries.
In addition to energy trade, China’s cooperation with Central Asia’s energy industry is also
developing from upstream energy exploration
and production to cooperation along the entire
value chain. Future cooperation will prioritise
downstream industries, such as petroleum refining and petrochemicals. In the future, it will be
further extended to energy-related industries like
petroleum equipment manufacturing and production services.
The long-term energy cooperation between
China and the Central Asian countries is based on
mutual trust. The Belt and Road Initiative provides
a new platform and opportunities for diversification. The Central Asian countries can expand into
and build energy export markets in North-east
Asia, South Asia and the Pacific Rim countries.
10.1.4 USA
The USA and China are the world’s largest
energy producers and consumers. The two
countries regarded energy as one of the important
cooperation areas in 1979 when they established
diplomatic relations. Over the past 40 years,
despite differences and obstacles, China and the
USA have been expanding and deepening energy
cooperation and made great progress. Especially
in the 21st century, the USA’s energy independence strategy offers an unprecedented opportunity for China-US energy cooperation against the
background of energy and economic globalisation. The two countries have enormous potential
for cooperation in areas like natural gas, nuclear
power and renewable energy.
Bilateral and multilateral energy cooperation
mechanisms—like the APEC Energy Working
Group, the Asia-Pacific Partnership on Clean
Development and Climate, and the Carbon
Sequestration Leadership Forum—strengthen
China-US cooperation in the energy sector. From
2004, China-US energy policy dialogue became
an important communication channel for the two
governments and a platform for the two countries’ energy sectors to discuss topics like energy
trends, energy efficiency, resource and environmental protection. The U.S.-China Oil and Gas
Industry Forum—co-hosted by China’s National
Energy Administration, the U.S. Department of
Energy and the U.S. Department of Commerce—
has been actively promoting the two countries’
cooperation in oil and gas.
In 2008, the U.S.-China Ten-Year Framework
for Cooperation on Energy and Environment was
signed during the fourth China-U.S. Strategic
Economic Dialogue, making energy cooperation
the focus of the conference for the first time.
10.1.5 South Asia and ASEAN
South Asia covers eight countries, including
India, Pakistan, Bangladesh and Sri Lanka. Five
of the eight countries share a border with China.
Special Report 5: International Energy Cooperation and Governance
663