Tuesday, May 20, 2014

Russia, China set to promote oil cooperation, soonest start of gas supply to China Economy


SHANGHAI, May 20. /ITAR-TASS/. Russia and China intend to broaden cooperation in the oil industry and promote the soonest start of Russian gas supplies to China, the leaders of the two countries said in a joint statement adopted upon results of talks between Vladimir Putin and Xi Jinping in the Chinese city of Shanghai on Tuesday.
According to the document, the two countries agreed “to step up comprehensive Russian-Chinese energy partnership, broaden complex cooperation in the oil industry, promote the soonest start of Russian gas supplies to China, enhance cooperation in the coalmining industry, including through development of deposits in Russia and development of transport infrastructure and active development of construction projects of new power-generating facilities in Russia for a higher electricity export to China.”
Russia and China have signed 6 inter-governmental energy agreements over the past year. More than 20 agreements were signed between Russian and Chinese companies. The sides managed to reach agreements on a number of strategic projects and move closer to forming an energy alliance.

Launch of Eastern Siberia - Pacific Ocean oil pipeline
The launch of the Eastern Siberia - Pacific Ocean Oil Pipeline (Russia and China are implementing a large-scale project valued at more than $60 billion for deliveries of crude oil to China on a pipeline running from Skovorodino in Russia to Mohe in China) and contracts signed by the Russian oil company Rosneft (in June 2013, Rosneft signed a 25-year-long $270 billion contract for the delivery of 360.3 million tons of crude oil to China with the Chinese National Petroleum Corporation - CNPC) laid down the foundation for fruitful cooperation.