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Russian Gas to Power Shanghai Homes by Year-End with Completion of East-Route Pipeline

November 22, 2024
in News
Reading Time: 11 mins read
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Russian Gas to Power Shanghai Homes by Year-End with Completion of East-Route Pipeline
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Russian natural gas is expected to fuel households in Shanghai by the end of this year, following the completion of the final segment of the China-Russia east-route natural gas pipeline, Chinese state television CCTV announced on Monday.

The pipeline, stretching from Heilongjiang province, bordering Russia, to the bustling metropolis of Shanghai, is poised to become fully operational. The southernmost section connecting Jiangsu province to Shanghai has now been officially completed, marking the culmination of the project, according to the report.

Spanning an impressive 5,111 kilometers, the pipeline symbolizes the deepening economic cooperation between China and its resource-abundant neighbor. It promises to deliver a stable supply of natural gas, benefiting approximately 130 million households annually, CCTV reported.

Touted as the world’s largest single-pipe natural gas infrastructure, the pipeline is expected to play a critical role in optimizing China’s energy consumption, advancing its green energy transition, and achieving the nation’s “dual carbon” goals. China aims to peak its carbon emissions by 2030 and achieve carbon neutrality by 2060.

The pipeline connects to Russia’s 3,000-kilometer-long “Power of Siberia” segment, which commenced partial operation in China five years ago. Since then, the pipeline network has been expanded southward. To date, over 78 billion cubic meters (2.7 trillion cubic feet) of natural gas have been supplied to China, as reported by state-owned PipeChina, formally known as the China Oil and Gas Pipeline Network.

Construction of the southern section, which begins in Hebei province and ends in Shanghai, began in 2020. Chinese workers completed the project seven months ahead of schedule, PipeChina official Cui Zong told CCTV. The pipeline traverses the North China Plain, often experiencing natural gas shortages in winter due to increased heating demand, and the Yangtze River Delta, a densely populated economic hub.

With an annual capacity of 38 billion cubic meters, the east-route pipeline becomes the third cross-border natural gas pipeline into China, following similar projects from Myanmar and Central Asia.

The completion of this pipeline underscores the growing energy trade between China and Russia, particularly as Western economies impose sanctions on Russian commodities in response to its invasion of Ukraine. In 2023, Russia’s pipeline gas exports to China surged by 61.7% compared to the previous year, reaching $6.4 billion, according to Russian state agency TASS. China now ranks as Russia’s second-largest importer of pipeline gas, after Turkmenistan.

Russian crude oil exports to China also increased significantly, with 107.02 million metric tons (equivalent to 2.14 million barrels per day) shipped in 2023, a 24% rise from the previous year, as reported by China’s General Administration of Customs.

The completion of the east-route natural gas pipeline marks a significant milestone in the evolving energy partnership between China and Russia, highlighting its strategic importance for both nations in the face of shifting global dynamics.

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