Recently, China and Russia formally signed an intergovernmental agreement on the Far East Route natural gas pipeline. According to the agreement, Gazprom will export 10 billion cubic meters of natural gas to China every year through the Far East pipeline.

Far East Line Pipeline

The Far East Line pipeline runs from Vladivostok, Russia to China, passes through the Russian Federation in the Dalnerechensk region, crosses the Ussuri River, and enters the section from Hulin City, China. The source of natural gas is Sakhalin, that is, Sakhalin Island. China and Russia respectively operate domestic road sections, and the settlement is in RMB and rubles.

This will increase to 10.4 billion cubic meters in 2021, and the pipeline will export 15.5 billion cubic meters in 2022. It is planned to reach the maximum annual gas supply of 38 billion cubic meters per year by 2025.

Coupled with the 10 billion cubic meters of the Far East line, the Power of Siberia + Far East pipeline will eventually reach a gas transmission capacity of 48 billion cubic meters after 2025.

The long-term plan is the Power of Siberia No. 2 natural gas pipeline currently being negotiated and the Eastern Alliance natural gas pipeline extending through Mongolia. The designed annual gas transmission capacity is 50 billion cubic meters, but it will take seven or eight years to complete, and full-load gas transmission may be completed. It takes 10 years.

Another important content of the Sino-Russian Far East Natural Gas Agreement is local currency trade settlement, that is, the de-dollarization of Sino-Russian trade. This is one of the trends that Washington is least willing to see under the current international situation. China and Russia can be said to have taken the lead in raising the banner of de-dollarization, including many countries in Southeast Asia, the Middle East, Africa, and South America. The global trend of seeking to get rid of the dependence on the US dollar has become irreversible. Many people believe that this will be the heaviest blow to the US global hegemony system. Editor/He Yuting