September 3, 2010

Russia opens section of China oil pipeline

SHANGHAI

Russia has opened its section of a crude oil pipeline from eastern Siberia to China, a major step in expanding energy co-operation between the neighbouring powers.

The 1,000-kilometre pipeline will connect Russian oil fields with Daqing, a major oil production base in northeastern China.

Russia is the world’s biggest energy producer and China is the world’s largest energy consumer, overtaking the United States last year. Although Europe remains Russia’s largest export market for gas and oil, both Beijing and Moscow have been seeking to diversify their energy sources and markets, despite a long history of mutual suspicion and tensions.

The Chinese segment of the pipeline is still under construction but is expected to begin operations before the year’s end, the statement said.

Eventually, the pipeline is to provide 30 million tons of oil a year to China, with exports to the Asia-Pacific region expanding to a total of 50 million tons a year, Putin said.

During a visit by Putin to Beijing last year, Russia signed dozens of commercial pacts worth $3.5 billion.

Associated Press

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