China Trade Information

Russia and China sealed a long-delayed energy deal on Tuesday to build an oil pipeline in Siberia to boost energy exports to China after talks concluded between Chinese Premier Wen Jiabao and Russian Prime Minister Vladimir Putin.

The deal was inked by China National Petroleum Corporation (CNPC), the country’s largest oil producer, and Russia’s state-owned pipeline giant, Transneft, in the presence of Putin and Wen.

The pipeline would run from the East Siberia-Pacific Ocean (ESPO) pipeline to the Chinese border. The capacity is expected to hit 15 million metric tons per year. The ESPO pipeline, to carry oil pumped by Rosneft from Siberian fields, is still under construction, sources reported.

Currently, Rosneft, the largest oil major in Russia, supplies China with oil by rail. As China’s neighbor, Russia is the fifth-largest supplier of crude oil to the Chinese market.

The pipeline is designed to run approximately 70 kilometers from Skovorodino in Siberia to the Chinese border and will finally supply the oil hub of Daqing, Heilongjiang Province, northern China.

Tags: CNPC, Petroleum

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