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Monday, July 17, 2017

China Builds New Pipeline to Transport Oil from Russia

The construction of a new oil pipeline in Heilongjiang province was completed on July 12. Around 15 million tons of crude oil will be transported annually from Russia to China via the new network, which is expected to be put into use later this year.

The new pipeline, with a length of 941.8 kilometers, stretches from Mohe at the Russian border to Daqing. It is the China leg of the second East Siberia Pacific Ocean pipeline project that pumps Russian crude oil to China, and is constructed to tackle the oil shortage in the country’s northeastern region. As several major oil fields in the region have already been excessively exploited, local oil production has decreased in recent years, causing an energy shortage for the region’s 20 refineries.

According to local authorities, the new pipeline will transport crude oil from Russia with an annual capacity of 15 million tons.

This is not the first pipeline that can transport Russian oil to China. According to Chinanews.com, the two nations have already built a pipeline that imports over 15 million tons of crude oil from Russia to China annually. As of June, over 100 million tons of crude oil has been successfully transported.

One of the crucial components of the Sino-Russian relationship is cooperation in the energy field. According to Reuters, Russia overtook Saudi Arabia in 2016 to become China’s biggest crude oil supplier for the first year ever. Some experts believe that EU sanctions on Russia has led to the latter’s economic downturn, pushing it to seek more cooperation with China, where demand for crude oil remains high.

Source: People's Daily Online