Home>News Center>China

Sinopec buys more oil from Russia
By Xie Ye (China Daily)
Updated: 2004-04-26 21:28

Sinopec, China' No 2 oil company, is expected to import 17 million tons of crude oil from OAO Yukos Oil Co -- Russia's second largest oil firm -- via a railway over the next four years.

The first batch of the Russian oil will be delivered starting May 1 by a rail link from Russian territory in Erlianhaote in China's Inner Mongolia.

The contract is part of Russia's move to considerably raise oil exports to China using trains.

Earlier last month, Yukos and Russian Railways agreed to more than double rail crude oil exports to 6.4 million tons this year, up from 3 million tons last year.

China National Petroleum Corp (CNPC) -- the nation's largest oil company -- will import 3.86 million tons, while Sinopec will purchase the remaining 2.6 million tons.

The oil delivery to China is expected to further increase to 8.5 million tons in 2005, and to 15 million tons by 2006.

Starting then, CNPC alone will buy 10 million tons of oil annually from Yukos for seven years.

Sinopec started to import crude oil from Yukos in 2000. The imports reached 1.72 million tons last year, rising from 206,000 tons four years ago.

The company imported 600,000 tons of crude oil from Yukos in the first quarter of this year.

Sinopec and Yukos will renew their oil trading contract when the current pact finishes.

Analysts said China and Russia have great potential to increase oil trade. Russia has rich oil and gas reserves, while China needs huge oil imports to fuel its economic boom.

They said to increase oil exports by rail will be beneficial to both Yukos and Chinese oil companies since the proposed Sino-Russia oil pipeline project is in stalemate.

China is competing with Japan to transport the same East Siberia crude via different oil pipelines. The Kremlin has yet made a final decision.

Yukos is the major oil trading partner with China. The Russian company exported about 3 million tons of oil to China last year, accounting for 60 per cent of Russia's crude exports to China.

  Today's Top News     Top China News

NPC rules out HK general elections in 2007, 2008



China to quadruple GDP by 2020 to $4 trillion



WHO to help China in SARS probe



Website loses case over MP3 downloads



Working age population to hit 940m by 2020



22 detained for fake milk products


  WHO to help China in SARS probe
  NPC rules out HK general elections in 2007, 2008
  Working age population to hit 940m by 2020
  22 detained for fake milk products
  Rail blast aid flows into DPRK
  Survey: East richer than west
  Go to Another Section  
  Story Tools  
  News Talk  
  An American apolgy to the family of Chinese pilot