The Congressional Research Service has prepared a report for the legislature on the operation of the Power of Siberia gas pipeline, which delivers gas from Russia to China. Analysts have invited congressmen to consider how the energy deal between Moscow and Beijing could affect US foreign policy and security.
Russian-Chinese cooperation, which is necessary for the functioning of the gas pipeline, “does not bode well for the United States as a whole, or for their relations with each country,” the document reads to RT.
At the same time, the authors of the report indicate that further interaction between the Russian Federation and China in the energy sector may lead to losses in the export of American liquefied natural gas (LNG).
“Although the Power of Siberia gas pipeline does not cause much concern to the United States, a larger agreement between Russia and China could usher in new market trends and promise US losses in future LNG exports,” the research service said.
American experts recall that by 2025, when the gas pipeline is operating at full capacity, the Power of Siberia will supply 38 billion cubic meters of gas per year to China. This will be 13% of all China's demand in 2018. Thus, in five years, Beijing will become the second largest buyer of Russian fuel after Germany.
The report emphasizes that, according to some experts, the pipeline was supposed to be a signal for Washington.
“Speaking about Russia, the launch of the gas pipeline showed that neither the USA nor Europe will be able to prevent the Russian Federation from pursuing its interests. In the case of China, the time of putting the gas pipeline into operation showed that American LNG has ceased to be a serious motivating factor in a trade dispute, ”the service writes.
In the United States, Moscow is seen as a competitor in the energy sphere, explained Yuri Rogulev, director of the Roosevelt US Studies Foundation at Moscow State University, in an interview with RT. In this case, we are talking about the struggle for the Chinese market. China consumes a huge amount of energy, which is why the American side is afraid of losing such an importer.
“The United States has grown from a major consumer of energy into a major exporter. And therefore, paradoxically, they turned out to be dependent on the state of the energy market and on fuel prices. Therefore, they feel competition from Russia, ”added Rogulev.
Unprecedented project
The launch of the Power of Siberia gas pipeline took place in December 2019. The contract for the supply of fuel under it to China is designed for 30 years. It is expected that over this time over 1 trillion cubic meters of gas will be delivered. The first six months, pumping will take place in commissioning mode, and the Power of Siberia will work at full capacity by 2025.
The gas pipeline is a joint project of Gazprom and the China National Petroleum and Gas Corporation (CNPC). Its length only in Russia is about 3 thousand km. The Power of Siberia begins with the Kovykta gas field, then passes the Chayandinskoye and Amur gas processing plants, and then crosses the Chinese border.
According to Russian President Vladimir Putin, the Power of Siberia is an unprecedented in scale high-tech project.
“This step takes Russian-Chinese strategic cooperation in the energy sector to a qualitatively new level, brings us closer to solving the task set together with Chinese President Xi Jinping to bring bilateral trade turnover to $ 200 billion in 2024,” Putin said.
The Chinese side, in turn, also considers the project strategically important. So, Deputy Foreign Minister Le Yucheng said the deal with Russia will become a new incentive for practical cooperation between the two countries.
- Russian President Vladimir Putin and Chairman of the People's Republic of China Xi Jinping
- © Ramil Sitdikov / RIA Novosti
It is worth noting that in March Vladimir Putin approved preparations for the construction of another gas pipeline to China - “Power of Siberia - 2”. It is assumed that the highway will pass from the fields of Western Siberia through Mongolia. According to the head of Gazprom, Alexei Miller, the volume of supplies can reach up to 50 billion cubic meters of gas per year.
The game is not by the rules
Meanwhile, the Congressional Research Service noted that the administration of US President Donald Trump does not pay due attention to the export of Russian gas to China. The authorities are mainly focused on the dependence of Europe on fuel from the Russian Federation.
“The Trump administration is focusing on two areas: increasing US LNG exports to Europe and preventing the construction of the Nord Stream-2 gas pipeline, which Russia is laying to increase the potential for delivering natural gas directly to Europe through Germany (bypassing Ukraine),” the report said. .
Recall, recently, Washington has made a lot of efforts to try to stop the implementation of Nord Stream 2. So, on December 21 of last year, Trump imposed sanctions against the project. As a result, the Swiss company Allseas, which was laying the underwater elements of the pipeline, stopped its work and refused to return to construction.
Some allies of the United States intend to hinder the construction. For example, in April, the Deputy Minister of State Assets of Poland, Janusz Kowalski, said that his country could seize the assets of the pipeline. “Make every effort” to prevent the completion of Nord Stream 2, they also promised in Ukraine.
- Construction of the Nord Stream 2 gas pipeline
- © Stefan Sauer / dpa / AFP
Commenting on the US actions, Russian President Vladimir Putin emphasized that the task of the sanctions is to provide competitive advantages to American LNG, which costs much more than Russian fuel. The president is convinced that Washington wants to "ensure the market for its goods solely in its own selfish interests to the detriment of the consumer in Europe."
However, despite the pressure, work to complete the highway continues. In March, the pipeline operator Nord Stream 2 AG announced that it had all the necessary financial resources for this. The Minister of Energy of Russia Alexander Novak does not doubt the implementation of the project.
“Given that a huge amount of funds was invested and there was very little investment left, about 5% of the total cost of the project, I think this project will definitely be implemented,” he said.
The United States uses unfair competition with respect to Nord Stream 2, resorting to blackmail and pressure, says Americanist Yuri Rogulev.
“Washington insists that the project will strengthen Europe’s dependence on Russia, will contribute to its earnings, and the Americans are allegedly cherishing the interests of the EU. They take advantage of the fact that among European countries there is no unity regarding the gas pipeline, ”he said.
Political analyst Sergei Sudakov, in turn, did not rule out the possibility that the United States might try to use similar tools in relation to the “Power of Siberia”.
“The US will never play by the rules. You can say as much as you like that there is international law, decency, there are borders that cannot be crossed, but they do not exist in America. The United States lives by the principle of the classical empire - "the end justifies the means." I believe they can introduce a number of restrictions on Chinese companies that will receive energy from the Power of Siberia. This will be done in order to offer China its expensive liquefied natural gas, ”he concluded.