Sino-Russian crude oil pipeline: input 300 million tons of crude oil in 20 years

The Chinese-Russian crude oil pipeline project, which has received much attention, was formally announced yesterday. This means that Russia’s crude oil exports to China will double in the future. As a neighbor of China, Russia’s supply of crude oil to China may also surpass Iran’s, from the fourth largest crude oil supply country to the third largest supply partner.

The Sino-Russian crude oil pipeline is a starting point from the Skobroodino distribution station of the Far East pipeline in Russia. It ends at Daqing Station in 13 cities, counties and districts in Heilongjiang Province and Inner Mongolia Autonomous Region of China, and has a total length of about 1,000 kilometers.

Russia has always been one of the major countries supplying crude oil to China. From January to August of this year, the amount of imported crude oil from Russia was 10.75 million tons, and the import volume of ** country crude oil was about 7%. Russia is one of the few countries with more than 10 million tons of supply.

However, according to the data from the previous August, Russia’s exports of crude oil to China increased by only 5.23%, while in Angola, Saudi Arabia, and Oman, the increase was 48.5%, 12.5%, and 15.09%, respectively. Other countries, such as Brazil, Kazakhstan, and Venezuela, even exported 160%, 85%, and 130% of their crude oil to China. Therefore, the successful completion of the Sino-Russian crude oil pipeline also laid the foundation for Russia's increase in crude oil exports to China.

The Sino-Russian negotiations for the "oil-for-oil" contract were based on the "Memorandum of Understanding on Cooperation in the Oil Field" signed by the two sides in Moscow on October 28, 2008. According to the framework agreement at that time, China will provide 15 billion U.S. dollars and 10 billion U.S. dollars to Rosneft and Transneft, respectively; in exchange, Russia will, in the 20-year period, China exports 300 million tons of crude oil.

It is worth noting that Russia will supply 15 million tons of crude oil to China each year through China-Russia crude oil pipelines. The contract period is 20 years, which is exactly 300 million tons.

If the Russian export volume is calculated to be 15.3 million tons in 2009, then Russia’s supply to China will increase directly to 30 million tons/year in the future, which is expected to surpass Iran’s supply. three.

However, Guo Jin Securities researcher Liu Bo pointed out that due to the current increase in China's crude oil demand, and Brazil and other countries also signed relevant agreements with China, the future supply of crude oil will increase in other countries, Russia can ensure that the first three seats of crude oil supply also uncertain. From January to August of this year, China's crude oil imports have reached 203 million tons, a year-on-year increase of 13.2%, which exceeded China's total crude oil imports last year.

The completion of the crude oil pipeline also pave the way for the smooth development of Sino-Russian refining projects. On September 21, the 13 million tons annual refining project of Tianjin, China and Russia formally laid the foundation for Nangang Industrial Zone in Tianjin Binhai New Area. The Tianjin project will annually produce 10.5 million tons of refined oil. There will be 18 sets of production facilities and supporting docks, oil storage and transportation and other facilities to process Russian crude oil.