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Rosneft plans to increase oil supplies to China

However, analysts believe that the scheme will be efficient only with the exports of oil products from the oil refinery

MOSCOW, February 22 (Itar-Tass) – Russian Deputy Prime Minister Arkady Dvorkovich held on Friday a working session to pave the way for a meeting of the co-chairman of the Russia-China energy dialogue, due in Beijing next week, his spokeswoman Aliya Samigulina said.

According to Itar-Tass information, the co-chairmen will discuss an increase in exports of Russian oil to China initiated by Russia’s leading oil company Rosneft. One of the options would be to pump additionally one to two million tons through a branch pipeline to China. Direct supplies of oil to China are regulated by an intergovernmental agreement, and changes to it necessitate an application from the dispatcher.

However, according to Itar-Tass information, Rosneft has not given the exact amount of deliveries to amend the agreement.

According to experts, Rosneft may additionally supply up to two million tons of oil a year to China from Verkhnechon and Vankor oil fields due to higher-than-anticipated output at the oil fields.

Besides, the Energy Dialogue will discuss oil deliveries to the Tianjin oil refinery, whose construction is planned by Rosneft and China National Petroleum Corporation.

It is expected that the plant will process 13 million tons of oil a year, of which nine million tons will be Russian oil. Oil will be supplied in tankers to the port terminal of Tianjin and then flow about 42 kilometers through a pipeline to the refinery. Northern China, Central Valley as well as the coast of Eastern China are seen as the targeted sales markets for this oil.

However, analysts believe that the scheme will be efficient only with the exports of oil products from the oil refinery.

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