Rosneft, Transneft to increase oil supply to China
Rosneft President and Chairman of the Management Board Igor Sechin and Transneft President Nikolai Tokarev have signed agreements to increase oil supplies volumes to China and to the Rosneft’s Tuapse refinery in the Krasnodar region.
The package of agreements on oil supplies increase to China depends on commitments by the parties to finance and implement capacity expansion of the Skovorodino-Mohe oil pipeline, as well as to increase the volumes of crude shipment. The pipeline capacity is expected to reach 20Mt of crude per year from January 2015 and 30Mt per year from January 2018. This means a supply of an extra 15Mt per year to China from 2018 to 2037.
The agreements reached are aimed at fulfilling the agreement between the Government of the Russian Federation and the Government of the People’s Republic of China to expand cooperation in crude oil trading, which was signed on 22 March 2013. The agreement on oil supplies to the Tuapse refinery provides for supply volumes of 12Mt per year once the work on increasing the capacity of the trunk pipeline’s leg from Tikhoretsk to Tuapse refinery is completed.