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Rosneft in talks to enter fuel retail market in China

The main goal of the talks for Rosneft is to enter the Chinese retail market through the joint venture Vostok Neftekhimiya

Photo EPA/ITAR-TASS

Photo EPA/ITAR-TASS

MOSCOW, August 29 (Itar-Tass) - Rosneft CEO Igor Sechin will participate in the next round of talks with the Chinese National Petroleum Corporation (CNPC). The partners will discuss marketing issues related with the construction project of an oil refinery in the Chinese city of Tianjin, a source acquainted with the agenda of an upcoming visit told Itar-Tass.

“The main goal of the talks for Rosneft is to enter the Chinese retail market through the joint venture Vostok Neftekhimiya, including the participation of the joint venture in the development of the network of gas stations (up to 300 gas stations),” the source said. Meanwhile, he did not rule out, “If corresponding agreements are not reached, some part of produce of the oil refinery may be exported.”

The intergovernmental agreement over the construction project of an oil refinery in Tianjin was signed in the spring of this year. The joint venture Vostok Neftekhimiya, in which Rosneft owns 49% of stock and CNPC – 51% of stock, is implementing the project. The oil refinery is expected to refine 13 million tons of oil annually, about nine million tons of which will make Russian oil. The oil will be delivered by tankers to the terminal at the port of Tianjin and will be pumped through the oil pipeline at a distance of about 42 kilometers to the oil refinery. Light oil products will make more than 80% of overall output at the oil refinery under the project.

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