Support The Moscow Times!

Russia Tightens Oil Grip in Top Market China

(Bloomberg) — A second Sino-Russian oil pipeline began operations on New Year’s Day, doubling China’s capacity to import crude from the East Siberia-Pacific Ocean system.

China can now import 30 million tons annually (about 600,000 barrels a day) of Russian ESPO crude via pipeline, up from 15 million tons before the second branch opened, the official Xinhua News Agency reported Monday. 

The two lines run parallel to each other between Mohe at the border and Daqing in northeast Heilongjiang Province, the state media organization said.

Russia pipped Saudi Arabia most of last year as the top crude supplier to China, the world’s biggest buyer. The ESPO system, a key piece of Russia’s efforts to export more energy to Asia, pumps crude directly to China via the two links and to the far eastern Pacific port of Kozmino for seaborne shipments.

The project is intended to deepen energy cooperation between the countries and serve the China-proposed Belt and Road Initiative, according to Xinhua. Russia also aims to start natural gas sales via the Power of Siberia pipeline by December 2019.

The first link started pumping Russian crude directly to China in 2011 and China National Petroleum Corp. started laying the second line in mid-2016.  

The country’s biggest oil and gas producer finished installing the 942-kilometer line Aug. 1.

… we have a small favor to ask.

As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just 2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.


Read more