China & Russia's New Gas Cooperation

Hello, SCI natural gas analyst Woody Wu. Today we’re going to talk about the new gas cooperation between China and Russia.

The Sino-U.S. trade war affected not only China’s manufacturing industry and the capitalmarket, but also its effort to extend gas resource pool. Now Russia seizes opportunity: During President Xi Jinping’s visit to Russia, the two countries signed agreements in energy cooperation.

China and Russia will start a new company focusing on gas trading. On June 5, Sinopec, Novatek and Gazprom Bank signed an agreement to start a joint venture to sell LNG in China. According to the agreement, the company will buy LNG from Novatek and sell to clients in the Chinese market. Besides, on June 7, Wang Yilin and Leonid Mikhelson signed the CNPC & Novatek Share Purchase Agreement of Acquisition of Arctic LNG2.

China’s largest shipping company COSCO Shipping Holdings and the Russia shipping giant Sovcomflot signed an agreement to start a new joint venture, shipping the LNG produced in Yamal to East Asia and North Europe. The new company is also invested by the Russia SCF Group and China Silk Road Fund and will own a fleet of 12 icebreaking LNGC at the very beginning.

Ok. That’s all for today’s SCI Feature. For more information, please visit SCI at intl.sci99.com. Thank you.