Rosneft may supply China with additional 9 million tonnes of oil
Rosneft may supply China with an additional nine million tonnes of oil per year for the implementation of the Tianjin oil refinery project, Deputy Russian Prime Minister Arkady Dvorkovich said following a meeting of representatives of the Russian-Chinese energy cooperation commission in Beijing.
"For now concrete parameters have not been determined, but in any event deliveries should be sufficient for the realization of the Tianjin oil refinery project, that is around nine million tonnes of oil, and China is interested in even further expanding deliveries," Dvorkovich is quoted by his Press Secretary Alia Samigulina as saying.
Firm contractual agreements could be secured during the next several months, Dvorkovich said.
During a visit to Beijing by Rosneft President Igor Sechin earlier this month, agreements were reached on substantially increasing shipments of Russian oil to China.
In the context of the joint venture Vostok Neftekhimia (East Petrochemicals, 49 percent owned by Rosneft, 51 percent by China National Petroleum Corporation (CNPC)) there was signed an agreement on a feasibility study for the building of an oil refinery in Tianjin and first-stone laying ceremonies for the new facility were held in 2010.
Plans call for the refinery to process 13 million tonnes of oil annually, of which around 9 million tonnes will be Russian crude. The oil will be delivered by tanker to the port terminal in Tianjin and carried a further roughly 42 kilometers to the refinery by pipeline. Under the project, output of light oil products will top 80 percent.
Northern China and the Central Plain, where the cities of Beijing, Tianjin, the provinces of Hebei, Shanxi, Henan, and Shandong are located, and the East China coast have been identified as target markets for the refinery's products. Project investment is estimated at $5 billion.
Rosneft has a long-term contract to supply China with an annual 15 million tonnes of oil via an offshoot from Eastern Siberia - Pacific Ocean pipeline (ESPO). Rosneft and Russian oil pipeline company Transneft clinched the 20-year deal in 2009, and deliveries began on January 1, 2001.