China and Russia are poised to expand electricity trade, a major step toward
co-operation in the energy sector.
"We expect to realize a large-scale cross-border electricity supply during
the next 10 years," said Zheng Baosen, executive vice-president of State Grid
Corporation of China.
This year, Zheng's company and the largest electricity producer in Russia are
scheduled to launch a feasibility study of plans for Russia to supply
electricity to China.
According to the plan, the Chinese company will increase its current
electricity import from Russia by fourfold, up to 18 billion kilowatt hours by
2010.
By 2015, Russia's electricity supply will not only reach Heihe of Northeast
China's Heilongjiang Province, but also the electricity grid across Northeast
and North China.
After a long-term co-operation agreement was signed between the two companies
last July, they have already fixed the method of supply, volume and pricing
principles for the supply through Heihe.
Some Russian entrepreneurs have suggested the two countries should turn more
attention to co-operation concerning production of electricity appliances.
Experts said China and Russia compliment each other in terms of the
electricity market. China has grown into a huge electricity consumer with
potential of further growth, while Russia, abundant with waterpower, is able to
produce electricity beyond its domestic demand.
The joint electricity project is not the only move the two countries have
made to expand their co-operation on energy and resources.
Russia and China agreed to build two major gas pipelines to ensure Russian
gas supply to China.
The agreement, expected to cost around US$10 billion, was signed by China's
largest energy firm the National Petroleum Corp (CNPC) and Russian natural gas
giant Gazprom.
More Chinese companies are seeking business opportunities in the neighbouring
country.
China's top coal miner Shenhua Group was also interested in coal exploration
in Russia, said Shenhua Vice-President Zhang Yuzhou. But he declined to
elaborate on details.
(China Daily 03/23/2006 page9)