There are still difficulties in Sino-Russian negotiations, and the project may be postponed.
Mongolian Prime Minister Oyun Erden said that China and Russia are on the same page"Siberian Power-2"Pricing negotiations for the gas pipeline project are not going very well, which will delay the start date of the project. Due to the rising international oil prices, the parties have not yet reached a consensus on such an important issue as supply, so this issue will take some time**. Although China and Russia have not yet officially stated their position, considering the progress of the previous Siberian power project and the current situation of the newly started project, the probability that the two sides will encounter difficulties in pricing negotiations cannot be ignored.
Extension: China and Russia"Siberian Power-2"It is surprising that the pricing negotiations for the pipeline project did not go well. In previous negotiations, both sides disagreed on the pricing of gas supply, and this round of negotiations seems to be tricky for both countries. Due to the fluctuating international oil prices, China and Russia have their own interests on this issue. China is the world's largest energy consumer, and of course it wants to make more profits from natural gas from China and Russia, and Russia also wants to reduce its own financial burden by raising the price of natural gas. Therefore, finding a balance between the common interests of China and the United States is undoubtedly a very arduous and arduous task.
20 years of pricing negotiations between China and Russia.
Looking at the two countries in"Siberian strength"The pricing of the project has been negotiated for almost 20 years, with the main controversy focusing on the pricing of the gas supply. Around 2000, due to the impact of high global oil prices, the Russian side sent $400 per kilogram to the European market, sometimes reaching $500 per kilogram cubic meter. In stark contrast, China wanted to keep oil prices below $300, because the cost of gas it bought from Central Asian countries at that time was $200 per kilogram. In the end, in the pricing negotiations, the two companies reached a compromise, although the details of the ** and sales contracts were not announced, but Chinese newspapers speculated that it was about $340 per kilogram of cubic meters, while the Russian side said that it was more than 350 meters per kilogram of meters. In the course of the consultations, both countries made concessions, which is cooperation between the two countries.
Extension: It remains to be seen whether the pricing negotiations between China and Russia on the Siberian Power 2 project will last for 20 years, as long as the previous round. However, judging from the pricing negotiations between China and Russia, the two countries have learned many valuable experiences and lessons from the negotiations, and in the process of negotiations, both countries have understood each other's concessions and understood each other's needs. However, as the world situation changes and supply and demand change, this time the consultation may be more challenging than ever. China and Russia must re-evaluate the current market environment in order to find an equilibrium that will satisfy both Russia and China.
Sino-Russian natural gas cooperation in the new situation.
The current trend of oil prices is quite similar to that before and after 2014, and many factors such as the Russia-Ukraine conflict and the Red Sea crisis have caused oil prices to rise and fall. Russia would benefit more if it were all priced in the market, but China would not be able to afford such high oil prices. You must know that the Siberian Power Project alone can transport 38 billion cubic meters of natural gas a year, which can provide Russia with 10 billion US dollars, while the Siberian Power No. 2 Project is a project with a larger annual capacity, and the total investment amount will be very huge. China will continue to pay more than a billion, as much as a billion, for this, in the face of Russia's unwillingness to compromise further. However, this does not mean that the valuation conference for the second project of the Siberian power is as protracted as it has been in the past. The current world situation is very difficult for Russia, and they are eager to sign a contract with China to ensure that the project starts as soon as possible. In stark contrast, while China still imports more natural gas to meet its own energy needs, it is not as urgent as Russia. China has a number of partners that can provide energy resources to countries like Central Asia and Myanmar. Therefore, China occupies a more advantageous position in the pricing this time.
Mongolia attaches great importance to the process of the project.
Mongolia is"Siberian Power-2"The transit countries of oil and gas transmission pipelines are very concerned about the progress made by China and Russia in the process of negotiations on the pricing of oil and gas pipelines, and look forward to holding negotiations with Russia on the oil and gas pipeline issue at an early date, and striving to complete the negotiations on oil and gas pipeline projects at an early date. The best exchanges between China and Russia can not only provide jobs for Mongolia, but also a profit that cannot be ignored for Mongolia. Oyun Erden said that at present, the Mongolian side is holding a high-level summit meeting between China, Mongolia and Russia to discuss the economic and trade corridor between China and Mongolia and Russia"Siberian Power II"and so on. Therefore, although the oil price talks have encountered difficulties, because the Russian side wants to reach an agreement as soon as possible, and the Mongolian side mediates it, the oil price talks will not be completely deadlocked. The Russian side will still provide China with a reasonable ** and guarantees that the project will not be delayed due to negotiations.
The conclusion was reached:
Although China and Russia are on"Siberian Power-2"Negotiations on the pricing of the pipeline project have not been pleasant, but because both countries have needs and there is a lot of room for cooperation, it is thought that they will strike some balance on this issue. At present, the cooperation between China and Russia in the field of oil and gas is of great practical significance. In order to ensure that the project runs smoothly, we hope to be able to reach an agreement on pricing. China, the world's largest energy consumer, must increase its oil imports in order to meet its own energy needs, and Russia also wants to reduce its own economic burden by exporting its own oil. Both companies have a strong intention to work together and have only agreed on pricing. Through the cooperation between China and Russia, we firmly believe that China and Russia will be able to eliminate the above-mentioned contradictions"Siberian Power-2"The smooth progress of the pipeline project has laid a solid foundation.