Across China: Heilongjiang

Crude oil pipeline

China last week started the construction of a crude oil pipeline from Heilongjiang to Russia, following a loan-for-oil agreement between the two countries last month.

China agreed in April to lend $10 billion to Russian oil pipeline monopoly Transneft and another $15 billion to state-run oil major Rosneft in exchange for 300 million tons of Russian oil to be transported over the pipeline over 20 years. The planned pipeline will run about 67 kilometers in Russia and 960 kilometers in China to end at the Daqing oilfield. Russia started construction of the pipeline to China in late April.

(China Daily 05/25/2009 page5)