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Page added on January 3, 2018
New Pipeline Doubles Russian Crude Oil Supply To China
Russia quietly doubled its crude oil export capacity to China in the new year when it launched a new pipeline, cementing its position as the number one supplier of crude to its Asian neighbor.
The extension of the East Siberia-Pacific Ocean, or ESPO, oil pipeline between Russia and China started operating on January 1, doubling the export volumes from 15 to 30 million tons annually, or almost 220 million barrels, Xinhua reported. The agency noted that the extension, which was agreed in 2013, would serve China’s Belt and Road initiative for expanding China’s regional influence in Asia.
The new section of the Eastern Siberia–Pacific Ocean pipeline began operations Monday, Xinhua added. The venture is expected to “deepen energy co-operation between Moscow and Beijing” and serve the Belt and Road Initiative, a major Chinese-led development project across Asia.
Rosneft is the supplier of the crude via the ESPO pipeline, while PetroChina is the buyer. The oil will be processed at three refineries in the Northeast of China. Back in September, Reuters reported, citing refinery sources, that one of these was undergoing a capacity expansion upgrade that cost US$880 million. The upgrade should increase its capacity to 400,000 bpd by the end of this year.
Originating in Skovorodino, Russia, the pipeline stretches to Mohe, the northernmost province of China, before passing through the Inner Mongolia Autonomous Region all the way to Daqing in the northeastern Heilongjiang province. As a result of the second line, Russia’s crude export capacity to China has now doubled from 15 million to 30 million tons, or about 600,000 barrels a day. This significantly boosts Russia’s lead over Angola and Saudi Arabia as Beijing’s’s biggest supplier of crude oil. China is currently considered the number one importer of raw petroleum in the world.
Construction on the second line began in August 2016. According to RT, the first pipeline from Mohe to Daqing began operating on January 1, 2011. Some 110 million tons of oil have passed through the first line so far. Another section of the pipeline snakes around China to Russia’s Far East, serving the specialized oil seaport of Kozmino.
Almost exactly one year ago, we reported that Russia overtook Saudi Arabia to become China’s biggest oil supplier for 2016. Since then Russia has held the crown of China’s biggest supplier for nine consecutive months based on the latest data, released in the last week of December.
In November, Russian crude exports to China totaled 5.12 million tons, or about 1.25 million barrels daily. That was 11% more than in November 2016. At the same time, Saudi imports fell by 7.8% in November, to 1.056 million bpd.
Higher imports have been necessitated not just by growing energy demand in China but also by falling production from mature field, many of them in northeastern China. But Russia is not the only one eating Saudi Arabia’s market share in the world’s top importer: the U.S. has been exporting crude at unprecedented rates. Last year, the average U.S. oil shipments to China stood at 180,000 bpd for January to September alone.
25 Comments on "New Pipeline Doubles Russian Crude Oil Supply To China"
Makati1 on Wed, 3rd Jan 2018 6:54 pm
China is preparing for the future and is not dependent on US oil or even US favor. Many suppliers means a secure source.
Suppliers of oil to China:
Russia
Saudi Arabia
Angola
Venezuela
Iran
Iraq
US
MASTERMIND on Wed, 3rd Jan 2018 7:01 pm
Madkat
China is on the way to banruptcy and 80 percent of the countries in their silk road are in junk status..And their coal is going to peak soon. And their oil peaked in 2015…They showed up to the oil party after the neighbors already called the cops! And they are on their way! LOL
JuanP on Wed, 3rd Jan 2018 7:02 pm
This is relatively good news for both China and Russia, but not so good for us as a species. It is also good to witness the long overdue increasing integration of Eurasia. I am always amazed at the scale of everything over there.
In many ways I liked the idea of globalization. I’ve always thought that things would be easier if all humanity spoke the same language. If we could design the best possible language and teach it to everyone then in a handful of decades we would all be available to communicate with almost every other person in the world.
Makati1 on Wed, 3rd Jan 2018 8:17 pm
Juan, I think English is as close to a universal language that we can expect. It has become the language of finance, another universal system. I doubt that you can find a country where where no one speaks English. Most of the world’s people are multi-lingual out of necessity. Only The US thinks that it is not necessary. But then, most Americans cannot speak their own language correctly. “Yah know.” lol
Davy on Wed, 3rd Jan 2018 8:43 pm
Bullshit, you are talking out your ass again mad kat. There are few multilingual speakers in the world today. Few bilinguals speak very effectively in the other language not there native language.
Boat on Wed, 3rd Jan 2018 8:44 pm
Mak,
Work on nutrition for your hosts. In a couple generations they would grow inches.
MASTERMIND on Wed, 3rd Jan 2018 9:10 pm
The more you resist change, the more change fights back and, eventually, it overcomes your resistance.
Boat on Wed, 3rd Jan 2018 9:34 pm
MM,
Your one who holds onto outdated ideas. Like the idea of a crash. So 2007 and peer reviewed proven wrong. No crash happened.lol
MASTERMIND on Wed, 3rd Jan 2018 9:46 pm
Boat
I based my beliefs on the limits to growth models which have always estimated a collapse by no later than 2030.. Nice try at a straw man though you xenophobic hillbilly!
Boat on Wed, 3rd Jan 2018 9:53 pm
I’ll let you know what you should think since you seem to lack the skills to think for yourself. Just another in a long line of doom blow hards that always seem to live another day. Lol
MASTERMIND on Wed, 3rd Jan 2018 9:59 pm
Boat
Suit yourself! Collapse science isn’t for the faint of heart. And you seem to get worked up really easily.
MASTERMIND on Wed, 3rd Jan 2018 10:01 pm
Boat
OMG we are being flooded with immigrants at a quarter percent every single YEAR! This is outrageous!
Makati1 on Wed, 3rd Jan 2018 10:26 pm
Boat: Work on your education. Most younger (<30) Filipinos are my 5'10" or taller. The Filipinas a bit shorter. Six foot plus is not unusual here. Of course, if you average ALL Filipinos, you might be correct. The war years were hard on the population here. But better short than obese. You don't die from "Short".
MASTERMIND on Wed, 3rd Jan 2018 11:18 pm
Madkat
Lately, and following the downgrade of his country’s credit rating, Zhou Xiaochuan, governor of the People’s Bank of China, has warned of a “Minsky moment”, a financial storm after a long period of deceptive calm.
https://www.ft.com/content/5d6ca2d6-de81-11e7-a8a4-0a1e63a52f9c
ouch China just got downgraded! And might have a misky moment coming!
Cloggie on Thu, 4th Jan 2018 12:51 am
That’s what you get Europe, when you let your foreign policy be dictated by enemies of Europe like John McCain.
https://uk.reuters.com/article/southstream-bulgaria-russia/timchenko-company-blames-mccain-for-lost-bulgaria-south-stream-work-idUKL6N0QA42D20140804
https://www.mccain.senate.gov/public/index.cfm/2014/12/statement-by-senator-john-mccain-on-cancellation-of-russia-s-south-stream-gas-pipeline-project
Sissyfuss on Thu, 4th Jan 2018 11:59 am
Mak, when you’re talking out of your ass are you able to fart in several languages?
MASTERMIND on Thu, 4th Jan 2018 12:14 pm
Madkat
China definitively proved that global capitalism has failed. That country did more than any other to become “the factory to the world”, and yet it still doesn’t have a middle class. It can’t turn the corner to become a balanced economy, because the factory slaves garner no real income.
Boat on Thu, 4th Jan 2018 1:00 pm
MM,
Apparently about everything that you type needs peer reviewed. In the 50’s China lost over 50 million due to famine. Capitalism around the world has improved living standards. Your level of misinformation is on par with mak. Lol,that’s saying something.
MASTERMIND on Thu, 4th Jan 2018 1:08 pm
Boat
8 Billionaires now hold as much wealth as half the plant’s population combined..Do you think that is really improving living standards for the majority? Once again you don’t have a clue about what you are arguing this is why you always make a fool of yourself.
MASTERMIND on Thu, 4th Jan 2018 1:11 pm
Why do Boat and Madkat keep attacking the peer reviewed system in Science? Its there to help fact check and improve accuracy ? Should a scientific journal just publish whatever any scientist writes down without checking it first?
onlooker on Thu, 4th Jan 2018 1:47 pm
Yes Boat, great to know that the Chinese are contributing ever more to dismantling the basis for life to exist on this planet
Boat on Thu, 4th Jan 2018 2:54 pm
Onlooker,
I am sure you were happier when the Chinese died from famine by the 10’s of millions. Die together as a team, don’t be selfish about life.
Boat on Thu, 4th Jan 2018 2:57 pm
MM,
I looked at one of your links. It was very opinionated and no mention of how the facts were gathered or where they came from. You lost the street cred by cut and paste with little review.
Boat on Thu, 4th Jan 2018 3:01 pm
Greggiet, MM, a mouse and truth are all the same idiot with the same backwater thinking.
MASTERMIND on Thu, 4th Jan 2018 4:52 pm
Boat
Believe whatever you want. Its not like it effects me either way.