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Transneft, JSC, is looking into the possibility of increasing oil supplies from Russia to China via Mongolia

Date of publication: 27 March 2013

Transneft, JSC, offers to look into the possibility to increase oil supplies from Russia to refineries located in the western part of China through Mongolia, the spokesman of the pipeline company said. According to him, Transneft did not participate in the negotiations about additional oil supplies from Russia to Chin, and only now started studying the signed documents to assess the logistics.

“There are different options to be considered, one of them is railway supplies of crude oil to China through Mongolia,” the representative of Transneft said, making it clear that this option had already been used previously– oil from Samotlor was delivered to Meget railway station (Irkutsk Region) and then by rail – to China: out of 7 mln tons 2 mln tons were delivered to Daqing through the Zabaikalsk border crossing, while 5 mln tons were transported through Mongolia (the Naushniki border crossing). “If oil is transported to China through Meget, not only the Russian pipeline system, but also RN-Trans - the railway operator of Rosneft will be given a full load. With this option, we will fill Russian pipelines rather than the Kazakh-Chinese pipelines for transportation, and we will not lose any cargo turnover, let alone export duties that we are going to have at 100% in the Russian budget,” the spokesman of the Company said.

As he says, the route through Meget is economically similar to the transportation route through Kazakhstan and it will provide the solution how to avoid transportation by the Atasu-Alashankou oil pipeline, which currently is not operating at full load; however, in a few years, when Kazakhstan reaches the target output, the pipeline may not have room for Russian crude oil. The economic vector of Russia, which is targeted at development of Siberia and the Far East, goes in line with the export focus on Meget, as the Irkutsk Region will have an additional opportunity for development. All the required wok on upgrading Meget has already been completed: the station is ready to operate at the capacity of 7 mln tons,” the spokesman of Transneft said.

Source: Interfax, Prime
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