Masaryk University Faculty of Social Studies
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MASARYK UNIVERSITY FACULTY OF SOCIAL STUDIES Department of International Relations and European Studies Chinese Energy Policy in LNG Producing Countries and Its Consequences for the European Union Energy Security Master's Thesis Xiao Xiao Supervisor: Mgr. Hedivika Kodouskova UČO: 380529 Study Field: European Politics Year of Enrollment: 2010 Brno, 2012 I hereby declare that this thesis I submit for assessment is entirely my own work and has not been taken from the work of others save to the extent that such work has been cited and acknowledged within the text of my work. Date: Signature 2 Acknowledgements Here I want to sincerely thank my family first for their love. When deciding if I should come to Brno to continue my study, they gave me the biggest support. Then I really appreciate all the teachers and colleagues in Masaryk University who gave me great help during my study. I cannot image if I could study without your unselfish support. I really enjoy the time in Brno. It's one of the best memories in my life. In short, just THANK YOU! Xiao Xiao 3 Content Abstract .......................................................................................................................... 6 1. Introduction ................................................................................................................ 7 1.1. Research Area: Energy Security and Natural Gas .......................................... 7 1.2. Research Objective and Research Questions .................................................. 8 1.3. Methodology ................................................................................................... 9 2. World Natural Gas Scenario .................................................................................... 11 3. The Review of China ............................................................................................... 15 3.1. Chinese Dimension of Energy Security and Its Energy Strategy ................. 17 3.2. The Chinese Energy Policy (Strategy) Abroad ............................................. 20 3.2.1. Going-Out Policy ............................................................................... 20 3.2.2. China’s International Oil and Gas Strategy (Policy) .......................... 21 3.3. The Main Actors of Chinese Energy Policy .................................................. 23 3.3.1. Government........................................................................................ 23 3.3.2. National Oil Companies ..................................................................... 24 3.4. The Practice .................................................................................................. 27 3.4.1. The Government Factor and Price Reform ........................................ 27 3.4.2. The Insecurity and The Efforts .......................................................... 29 4.The Review of European Union ............................................................................... 30 4.1 The European Definition of Energy Security and Its Energy Policy ............. 31 4.2. The Gas Supply of EU .................................................................................. 32 5. Middle East and Africa for Both Actors .................................................................. 36 6. The State of Qatar .................................................................................................... 37 6.1. Gas Sector ..................................................................................................... 39 6.2. Gas Market .................................................................................................... 41 6.3. Important Gas Fields ..................................................................................... 43 6.3.1. Offshore Operations ........................................................................... 43 6.3.2 Onshore Operations ............................................................................ 44 6.4. Gas-To-Liquid Project .................................................................................. 45 6.5. The Relationship between China and Qatar .................................................. 45 6.5.1 The Official Visit between China and Qatar ....................................... 45 6.5.2. Chinese NOCs in Qatar ...................................................................... 48 6.5.2.1. CNOOC................................................................................... 49 6.5.2.2. CNPC ...................................................................................... 50 6.5.2.3. Sinopec .................................................................................... 52 6.5.3. What is the Character of Bilateral Relations? .................................... 53 6.6. The Share of EU in LNG Export of Qatar .................................................... 55 6.7. The Possible Effect on EU ............................................................................ 61 7. The Islamic Republic of Iran ................................................................................... 63 7.1. Gas Sector ..................................................................................................... 64 7.2. Gas Market .................................................................................................... 65 4 7.3 Important Gas Field ....................................................................................... 66 7.3.1. South Pars .......................................................................................... 67 7.3.2. North Pars .......................................................................................... 70 7.4. Important Projects ......................................................................................... 71 7.4.1. Liquefied Natural Gas ........................................................................ 71 7.4.2. Pipelines ............................................................................................. 72 7.5. The Relationship between China and Iran .................................................... 73 7.5.1. The Official Visits between Iran and China ....................................... 73 7.5.2. Importing Energy From Iran .............................................................. 75 7.5.3. Bottleneck of Iranian LNG sector ...................................................... 75 7.5.4. The Chinese NOCs in Iran ................................................................. 77 7.5.4.1. Sinopec .................................................................................... 77 7.5.4.2. CNPC ...................................................................................... 79 7.5.4.3 CNOOC.................................................................................... 81 7.5.4.4. The Unflat Road to Iran .......................................................... 81 7.6. The Disparity between China and Western Countries .................................. 83 7.7. What is the Character of the Bilateral Relations? ......................................... 85 7.8. The Possible Effect on EU ............................................................................ 87 8. The Democratic and Popular Republic of Algeria ................................................... 90 8.1. Gas Sector ..................................................................................................... 91 8.2. Gas Market .................................................................................................... 92 8.3. Important Fields ............................................................................................ 93 8.4. Important Projects ......................................................................................... 95 8.4.1. Pipeline Project .................................................................................. 95 8.4.2. LNG Plants......................................................................................... 96 8.5. The Relationship between China and Algeria ............................................... 97 8.5.1. The Official Visits between China and Algeria .................................. 97 8.5.2. The Chinese NOCs in Algeria ............................................................ 99 8.5.2.1. CNOOC................................................................................... 99 8.5.2.2. Sinopec .................................................................................... 99 8.5.2.2. CNPC .................................................................................... 100 8.5.3. What is the Character of Bilateral Relations? .................................. 102 8.6. The Share of EU in Exported LNG of Algeria............................................ 104 8.7. The Possible Effect on EU .......................................................................... 108 9. Conclusion and Suggestion .................................................................................... 110 Bibliography .............................................................................................................. 114 Appendix .................................................................................................................... 129 5 Abstract The aim of the master thesis is to map and deeply comprehend the Chinese energy policy in LNG producing countries and analyze its consequences for the European Union energy security. The master thesis will follow this structure: a) it will