Igor Sechin expects growth in energy exports to China

China's economic growth means an increase in the country's need for reliable and secure energy supplies, said Igor Sechin, Executive Secretary of the Presidential Commission for Strategy of Development of Fuel and Energy Complexes and Environmental Safety, Chief Executive Officer of Rosneft.

"China's continued economic growth means a growing need for reliable and secure energy supplies. In particular, the IEA estimates that China's consumption of liquid hydrocarbons will grow by 9 per cent by 2030," Igor Sechin said at the opening of the VI Russia-China Energy Business Forum. He added that Russian companies are ready to contribute to the issue of China's energy security and energy consumption.

The head of Rosneft noted that cooperation between Russia and China in the energy sector is predetermined by the geographical position of the two countries and their place on the world energy map - Russia produces 11 per cent of the world's liquid hydrocarbons, while China accounts for 16 per cent of their global consumption.

In the first six months of this year, Russia's energy exports to China totalled about $46 billion, up 4% year-on-year, Igor Sechin said. "As a result, our country provided almost 20% of China's energy imports in terms of value. Let me remind you that in 2021 this indicator was only 13%," he stressed.

Over the past two and a half years, Russia has significantly increased its oil exports to China, allowing it to become the country's main oil supplier, ahead of Saudi Arabia. In the first half of this year alone, Russia's oil supplies to China grew by 5% and exceeded 55 million tonnes.

"China, in turn, is the largest buyer of Russian oil. According to our estimates, from January 2022 to June 2024, the economic impact for China of Russian oil imports compared to purchases from Middle Eastern countries will be between $14 and $18 billion," Igor Sechin said. Various options for increasing Russian oil supplies to China, including via the Northern Sea Route, are currently being considered, he added.

The Executive Secretary of the Presidential Commission for Fuel and Energy Complex also noted the development of cooperation between the two countries in the gas sector, coal supplies and the construction of nuclear power plants.

"This year, Russian gas exports to China will reach an all-time high - about 40 billion cubic metres of gas will be delivered, which should strengthen our country's position as the largest gas supplier to China," Sechin said. He noted that Russia has every opportunity to increase gas supplies to 100 bcm a year and more, given its powerful resource base in Western and Eastern Siberia and the Far East.

Last year, China also became the largest buyer of Russian coal, with deliveries increasing by 60% to over 100 million tonnes.

According to Sechin, cooperation between the two countries is also developing successfully in the nuclear sector. "The construction of new units of Russian design at the Tianwan and Xudabao nuclear power plants is in full swing and on schedule. A demonstration fast neutron nuclear reactor has been built in China with Russian participation," said Igor Sechin.

The Russia-China Energy Business Forum has been held annually since 2018, in accordance with the agreement reached by Russian President Vladimir Putin and Chinese President Xi Jinping. The Forum is held under the auspices of the Russian Presidential Commission for the Strategy of Development of the Fuel and Energy Complex and Environmental Safety and the State Energy Administration of the People's Republic of China, and is co-hosted by Rosneft and China National Petroleum Corporation (CNPC).

Rosneft
Information Division
July 23, 2024