BEIJING (Reuters) - Russian President Dmitry Medvedev is visiting Beijing ahead of the completion of a major pipeline to pump 300,000 barrels per day (bpd) of crude from Russia to China.
The pipeline is one of several initiatives that are tightening the energy bond between the world’s largest oil producer and the world’s second-largest consumer.
Medvedev’s visit has not brought a deal on gas pricing with China, the lack of which has for years has stood between the world’s top gas exporter and the fast-growing Chinese market.
The following details the energy ties between the two countries:
-- China’s oil imports from Russia could double if the new 300,000 bpd pipeline is used to capacity and the volume currently exported by rail and sea continues. Flows through the line were due to begin later this year or early next year.
-- China imported around 300,000 bpd of crude from Russia in the first eight months of this year, just under 7 percent of total crude imports during the period, customs data showed.
-- China agreed in 2009 to lend $10 billion to Russian oil pipeline monopoly Transneft and another $15 billion (9.4 billion pounds) to state-controlled oil giant Rosneft in exchange for the 300,000 bpd of Russian oil to be transported through the pipeline over 20 years.
-- China and Russia last week laid a cornerstone of a 13 million-tonne per year (260,000 bpd) joint refinery in Tianjin city for which Russia pledged to supply 70 percent of crude oil needs.
The size of the plant is 30 percent larger than initially planned in 2006, when China’s state-run CNPC and Rosneft agreed to build it and jointly operate 300 or more petrol stations. The two firms set up a joint venture in Russia to tap upstream opportunities there. CNPC was allocated $500 million worth of shares in Rosneft through its IPO in July 2006
-- China’s state-owned Sinopec group in 2006 invested billions of dollars with Rosneft. They jointly run Siberia’s UdmurtNeft oil producer and share the Sakhalin-3 Veninsk exploration block on Russia’s Pacific coast, China’s first foray into Russia’s oil and gas industry.
-- China and Russia were expected to sign on Monday an agreement to add two more reactors at the Jiangsu nuclear plant, which already has two 1.06 gigawatt reactors in operation using Russian technology.
-- China and Russia agreed earlier this month to expand nuclear power cooperation in seven areas, including building floating nuclear power plants, exploring uranium mines, eliminating old plants and developing markets abroad.
-- China agreed in August to lend Russia about $6 billion in exchange for increased coal supplies over the next quarter century. Under the deal, Russia will boost annual coal shipments to China to 15 million tonnes within the next five years and to 20 million tonnes thereafter.
-- It bought 7.6 million tonnes of coal from Russia in the January-August period, or 7.1 percent of its total coal imports.
-- Gazprom said in 2006 that the Russian gas export monopoly would build two major pipelines to China but the projects have been delayed due to wrangling over pricing.
China increased its energy ties with Central Asia countries by importing 2.38 billion cubic metres (bcm) of natural gas in the first eight months of this year, according to China’s economic planner, the National Development and Reform Commission.
-- In addition to a small amount of electricity imports into northeastern Heilongjiang province, China also shipped in several spot cargoes of liquefied natural gas (LNG) this year from Russia’s Sakhalin II, a project controlled by Russia’s gas monopoly Gazprom.
Compiled by Jim Bai and Chen Aizhu; Editing by Simon Webb
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