Kazakhstan National Oil and Gas Company and Chinese energy companies jointly study and decide to increase the capacity of the existing China-Kazakhstan oil pipeline and increase oil supply to China. For the Tokayev government, this move will undoubtedly put itself in competition with Russia again, but for our country, this move is beneficial but not harmful.
We all know that Kazakhstan is a country whose economy is extremely dependent on energy exports, but the country's neighbors in the north and south are also mostly energy exporters. Therefore, if Kazakhstan wants to export energy to the outside world, it can only choose two directions. Influenced by factors such as the concentration of energy production areas in the west, the good foundation of cooperation with Russia and the Caucasus countries, Kazakhstan's oil and natural gas are mainly supplied to the European market. Previously, about 76% of the oil produced by the world's top ten crude oil exporters were sold to Europe every year, and only 4% were exported to China.
. Kazakhstan turned to the east and increased crude oil exports to China, mainly for two reasons. First of all, as the world's largest emerging economy today, my country's demand in the energy field is becoming increasingly strong, and the imports of oil and natural gas are steadily increasing, and the market potential is great. Kazakhstan's move can be said to be a plan ahead of schedule so that the focus of energy exports will gradually shift to China in the future.
Picture Note: There was originally an oil pipeline between China and Kazakhstan
Secondly, it is the change in the international situation, which has cut off the oil export artery. This once hidden danger has become a real threat that Kazakhstan must face. As a landlocked country located in the hinterland of the Eurasian continent, if Kazakhstan wants to transport oil to Europe, it must pass through Russia or the Caucasus country. Therefore, starting from the western Kazakhstan oil field and using the "Caspian Sea Pipeline Alliance" project to directly reach Black Sea , gradually became the main energy export artery of Kazakhstan.
After the Russian-Ukrainian conflict broke out and Europe fell into the energy crisis , Kazakhstan could have made a big profit using this artery. But in order to counter Europe with energy as a weapon, the Putin government immediately cut off the energy export channel using environmental issues as an excuse after Kazakhstan President Zakayev expressed his willingness to supply oil to EU , and the two sides had a very unhappy fight. To this day, this pipeline has not fully resumed operations. Under this circumstance, China, which already has energy pipelines and is a major oil importer, has become the best choice for Kazakhstan.
Picture Note: "Caspian Sea Pipeline Alliance" project
It is worth noting that after suffering from Western sanctions, the Putin government now attaches great importance to the Chinese market. While supplying large amounts of low-priced crude oil to China, Russia is actively promoting the construction of new energy pipeline projects such as "Siberian Power 2". Therefore, Kazakhstan's entry will undoubtedly make itself the opponent in Russia's eyes again.
After all, although my country has built four major oil and gas import strategic channels for the northwest, northeast, southwest and offshore, the China-Myanmar oil and gas pipeline in the southwest has not been built for a long time and the energy transportation volume is not very high. , Middle East, and other places have shipping energy to my country, and the cost is higher than pipeline transportation. Therefore, what really makes Russia feel threatened in energy exports are Central Asian countries such as Kazakhstan. However, China's oil exports in these two directions are mainly economic competition, and it will not put the conflict directly on the table like before, and it will end up badly.
Of course, as an oil importer, our country is happy to see Russia and Kazakhstan compete in this way. After all, my country itself lacks oil and gas resources and has a high dependence on oil and gas on foreign countries. There is a competitive relationship between various energy suppliers, which will undoubtedly allow my country to have more bargaining chips when it is actually talking about business.
In addition, the international energy market is very susceptible to factors such as the geopolitical situation. The energy export parliament continues to adjust its export focus based on the actual situation of its own country and in combination with economic interests.In 2021, Norway was China's tenth largest oil supplier, but with the arrival of the energy crisis and the rise of European energy prices, Norway quickly made adjustments, reducing exports to China and giving priority to EU countries. Its market share in China was quickly divided by other countries.
After the Putin government exported crude oil at a low price to my country, my country did not propose other countries to my country's market. Saudi Arabia surpassed Russia in August this year and once again became my country's largest oil supplier.
It can be seen that in terms of energy issues, our country has a good understanding of the principle of "not putting eggs in one basket". Central Asia-Russia, the Middle East, Africa, the Americas, and the Asia-Pacific region, no matter where oil and natural gas are produced, our country will refuse. The more countries provide energy for our country, the more we can ensure our energy security, so that China can be invincible in energy security.
