Thursday, August 5, 2010

Eurasian Energy Moving East

While this blog has covered Eurasian energy movements to Europe, one cannot forget that Asia also needs oil and gas from Russia, the Caucasus and Central Asian Countries. Platts reports that Chinese oil demand for the first six months of 2010 was 210.81 metric tons, an average of 8.54 million barrels per day. This represents a 13% jump in demand over the same time period in 2009. Demand in natural gas also continues to rise.
To meet China's demands, Kazakhstan opened in July 2009 the first phase of its oil pipeline to China. As for natural gas, in December 2009 Chinese president Hu Jintao met with Turkmen president to inaugerate a Trans Asian gas pipeline. The Washington Post reports the pipeline will cost $6.7 billion to build, and will link with China's West-East gas pipeline. The pipeline is designed to meet half of China's gas needs. Russia has promised to meet the other half of China's gas needs, with two new pipelines from Siberia. In addition, Russian Premier Vladimir Putin recently relaunched the proposed Eastern Siberia-Pacific Ocean oil pipeline.
Not all reports demonstrate increased Chinese demand for energy, however. Eurasia Oil and Gas reports that China's imports of Iranian crude oil fell by almost a third in the first half of 2010.

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