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Russia will build two large gas pipelines to China within five years, it was announced yesterday.

The two countries will also continue a feasibility study on extending a Siberia-Pacific coast oil pipeline to China.

The high-profile energy deals were announced after nearly two hours of talks between President Hu Jintao and his visiting Russian counterpart Vladimir Putin.

The two leaders issued a joint declaration and witnessed the signing of 15 agreements on energy supplies, trade and investment.

According to the joint statement, energy is one of the main components of the strategic partnership between the two countries; and both sides plan "to implement a strategy of diversification in the energy sphere."

The statement stressed that the "energy departments and companies of the two countries are working actively to promote pipeline projects to supply crude oil and natural gas from Russia to China."

China National Petroleum Corp (CNPC), the country's biggest energy firm, and Russian gas giant Gazprom signed a contract for the building of two gas pipelines reportedly costing up to US$10 billion.

Gazprom Chief Executive Alexei Miller was quoted as saying that one of the pipelines would deliver gas from west Siberia and the other from Russia's Far East; and each of the pipelines would be capable of delivering 30 to 40 billion cubic meters of gas each year. China is reported to have consumed about 39 billion cubic meters of gas in 2004.

CNPC and Russian oil pipeline firm Transneft also signed a deal confirming a joint feasibility study on a spur to China of the US$11.5 billion East Siberia-Pacific Ocean oil pipeline, to be completed in 2008.

CNPC also signed a deal with Rosneft Oil Company on the establishment of joint ventures to refine crude and sell oil products.

Sources with the Foreign Ministry told reporters that seven more agreements ranging from exhibitions to the press and education will be signed today between relevant ministries.

During their talks, Hu said he firmly believed that Putin's visit would boost the strategic partnership and that China is willing to push forward bilateral cooperation in trade, high-tech industry, energy, and cross-border water protection.

Hu pointed out that this year marks the 10th anniversary of the establishment of the China-Russia strategic partnership of co-ordination and the fifth anniversary of the Sino-Russian good neighborly treaty of friendship and cooperation.

Echoing Hu, Putin said the start of the Year of Russia in China, which is unprecedented in scale and involves activities in various fields, shows that current Russia-China relations have reached "a very high level, and laid a better foundation for the future development" of their ties.

(China Daily March 22, 2006)