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Russia urges LNG cooperation with China as it sees potential for boosting oil exports to China

Alexander Novak, deputy prime minister of Russia in Beijing on Tuesday, said that Russia is looking to increase oil exports to China as well as to enhance cooperation with regards to the supply of liquefied gas.

Since the beginning of Russia's military operation in Ukraine, in February 2022, China and India are the two largest buyers of Russian crude oil. China imports approximately 1.4 million barrels per day of Russian crude oil via sea, and about 900,000. bpd by pipeline.

The United States introduced sanctions last month against Russia's largest oil producers Rosneft, and Lukoil.

Russian President Vladimir Putin denounced the sanctions, calling them unfriendly and saying that they wouldn't have a significant impact on the Russian economy. He also emphasized the importance of Russia to the global marketplace.

Russia's crude oil exports to China and India have remained relatively stable despite conflicting reports.

Novak said at a SinoRussian Business Forum in Beijing that Russia and Chinese partners have been discussing the possibility of increasing oil exports to China.

He said, "We see the prospects of increasing oil supply via pipeline routes and sea."

He said that the intergovernmental agreements allow for the extension of the terms for oil supply to China via Kazakhstan for a period of 10 years, until 2033.

He later met Chinese Vice Premier Ding Xuexian, Russian government said.

"Russia is a trustworthy supplier of oil to China." "We will continue actively working on expanding energy as a major area of partnership between China and Russia," Novak said at the meeting.

Russia and China have also actively cooperated in the production and export of seaborne liquefied gas.

Silk Fund, a subsidiary of China's state-owned energy giant CNPC, owns 9.9% of the Novetek project.

U.S. sanctions against Ukraine have slowed down the export of LNG from Russia, particularly the new Arctic LNG 2 facility, and have also significantly reduced the use by the tanker fleet to transport fuel.

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It received its first LNG cargo, from the sanctioned Russian Project at the end August. This was just days before a summit between President Xi Jinping and Russian President Putin.

Novak said at the forum that it was crucial to continue creating conditions for joint projects through joint efforts in the face of external challenges. Mark Heinrich/Guy Faulconbridge edited the article.

(source: Reuters)