MOSCOW, February 17 (RIA Novosti) - Transneft plans
to start building a Chinese leg of the East Siberia-Pacific
Ocean later in 2009 and to commission it in 2010, Russia's
monopoly pipeline operator said in a statement on Tuesday.
Under an agreement signed between Russia and China in
Beijing earlier in the day, a branch of the ESPO oil pipeline
will be built toward China and Russia will supply China with 15
million metric tons (110 million barrels) of crude annually for
20 years.
"The construction of the leg should be synchronized with
the construction of the first line of the ESPO pipeline," the
statement quoted the company's vice president, Mikhail Barkov,
as saying.
The pipeline's first leg was launched in October 2008 in
the reverse direction, running westwards. The construction of
the pipeline, designed to bring Russian oil to the lucrative
Asia-Pacific market, is due to be completed later this year,
which will enable ESPO to pump its first oil eastwards.
Barkov also said that China's $10 billion loan to Transeft
would primarily be invested in the construction of the Chinese
leg.
"In addition, there are projects that will contribute to
the functioning of the entire eastern pipeline and this leg in
particular," the Transneft official said.
A source close to negotiations said on Tuesday China would
extend a $15 billion loan to Russian state-run oil giant
Rosneft against the guarantee of oil supplies, while
Transneft's $10 billion would be granted with the
infrastructure as collateral.
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