Kazakhstan route could see Rosneft increase oil sales to China

Rosneft may increase oil supplies to China by over 9 million metric tonnes, according to Deputy Prime Minister Arkady Dvorkovich. Most of it may reportedly be delivered to China through Kazakhstan.

At a meeting of the Russian-Chinese Commission for Energy Cooperation in Beijing the two countries agreed to increase crude supplies to China by 9 million tonnes annually. The extra oil will be used to supply a joint refinery project in the city of Tianjin in northern China, Dvorkovich said on Monday.

“So far, specific parameters have not been defined, but in any case deliveries should be sufficient to start the Tianjin refinery project. This is about 9 million tonnes of oil and the Chinese are interested in an even larger increase in deliveries,” the Deputy Prime Minister is quoted by RIA Novosti news agency as saying after the meeting.

According to Kommersant daily, Rosneft is looking at possibilities to transfer around 7 million tonnes of oil to China through Kazakhstan, as the Eastern Siberia–Pacific Ocean oil pipeline only has enough room for another 1.5 to 2 million tonnes per year. Rosneft may reportedly be delivering the crude via the Atasu-Alashankou pipeline.

The newspaper’s source close to the Russian-Kazakh inter-governmental commission claims Moscow and Astana are currently discussing this matter. The newspaper says the oil major may begin delivery through Kazakhstan in 2014.

In the long-term the capacity of the Eastern Siberia–Pacific Ocean pipeline is planned to be increased but there’s no specific timetable in place.

Russia plans to double oil export to China, and to deliver over 30 million tonnes per year.

Rosneft and oil pipeline monopoly Transneft currently deliver 15 million tons of crude to China annually using the Russia-China branch of the East Siberia–Pacific Ocean pipeline under a deal signed in 2009.