Thursday, July 31, 2014
 
Follow sptimesonline on Facebook Follow sptimesonline on Twitter Follow sptimesonline on RSS
MOST READ



PARTNER NEWS



BLOGS



OPINION



WHERE TO GO?

The Romanovs in St. Petersburg

History of St. Petersburg Museum

Small Tragedy, Fatal Passion

Rimsky-Korsakov Apartment Museum

 

  Print this article Print this article

China Offers Transneft $400M for Oil Pipeline

Published: March 24, 2006 (Issue # 1155)


BEIJING China National Petroleum Corp. will provide Transneft with $400 million to build a long-promised pipeline that was originally supposed to ship Yukos oil to China, Transneft president Semyon Vainshtok said Wednesday.

Vainshtok made the announcement in Beijing as President Vladimir Putin wrapped up a two-day visit with assurances that he had not forgotten an agreement he had struck with Chinese President Hu Jintao in May 2003 to construct the pipeline.

Vainshtok said CNPC would finance a feasibility study for the pipeline and cover construction costs on Russian soil. The pipeline is to branch out from the still-unbuilt Far East pipeline at Skovorodino, about 70 kilometers from China.

The terms for the $400 million were unclear. Vainshtok classified the money as a gift.

We have worked with them for two years, so CNPC should give us this gift, or liwu, as they say in China, Vainshtok said, Interfax reported.

He said that the first installment would arrive this year, and construction of the Far East pipeline would be finished by the end of 2008.

The pipeline, which was to cost $2.5 billion and have a maximum throughput capacity of 30 million tons of crude per year, was due to become operational in 2005. Instead, however, Yukos has been crushed by the state through a series of multibillion-dollar tax claims, and the pipeline plans were first suspended and then attached to an appendix to plans by Transneft, the state-owned pipeline monopoly, to build a pipeline connecting eastern Siberia with Russias Pacific coast.

Putin told a business forum in Beijing on Wednesday that the pipeline would become a reality.

If this project is successfully completed and that is beyond doubt it will provide for significant increases in the volume of oil supplies from Russia to China, Putin told the forum, which Hu also attended, The Associated Press reported.

Rosneft president Sergei Bogdanchikov, playing up Chinas need for energy, said Wednesday that his company also planned to expand its role in the region, Interfax reported.

He said Rosneft had signed agreements with CNPC to create joint ventures that would work on oil production and the marketing of refined oil products.

It was unclear which fields in Russia the Rosneft-CNPC oil venture would operate. Bogdanchikov said the venture would bid for licenses on the market and would have access to several exploration licenses held by Rosneft.

China has long been eyeing stakes in Russian energy companies but has yet to succeed in gaining access to Russias energy stock and vast hydrocarbon resources. The other venture would give Rosneft access to Chinas growing retail market. Rosneft wants to sell gasoline in China, and the deal could position it to act fast should China move to liberalize its tightly regulated domestic fuel market.

The deals come on top of pledges this week to double Russian-Chinese trade by 2010 and to build two huge natural gas pipelines by 2011. With those promises, the Russian leadership appears to be signaling that China will become a major focus of Russias external economic relations even though the substance of the deals has yet to be determined.





 


ALL ABOUT TOWN

Thursday, July 31


Develop your leadership abilities during a lecture by famous Russian author and coach Radislav Gandapas. The event starts at 9 a.m. at 5 Lodeinopolskaya Ulitsa. The price for entry is 20,500 rubles ($570).


Relax and enjoy a Parisian atmosphere with some romantic and laidback jazz tunes during the Night of French Music at Lenny Jam Cafe, 63 Ligovsky Prospekt. The entrance fee is 250 rubles ($7).


The Womens Business Club is hosting a Beauty Brunch where participants are invited to discuss the latest news in the beauty industry and listen to lectures by professional stylists in the business.



Friday, Aug. 1


Bikers from all around the world will gather to take part in a parade, extreme shows and rock concerts during the International Biker Festival that revs its engines today and runs through Aug. 3 near Olgino Hotel, 4/2 Primorskogo Shosse.


The Peter and Paul Fortress will be turned into an open-air cinema today and tomorrow as part of the 5th International Short and Animation Film Festival. A huge screen across the fortress walls will air short films non-stop with board games, photo sessions and other activities also on offer for visitors. For more information, visit www.opencinemafest.ru



Saturday, Aug. 2


Gatchina Palace Park Museum will host its second annual Night of Light, an impressive audio-visual show across the night sky. Tickets are 600 rubles ($16).


If graphic design is more your thing then check out Illustration Day, where you will be able to visit an exhibition, attend lectures by professionals and even show experts some of your own work. The event starts at noon at Zona Deystvia, 73 Ligovsky Prospekt. The entrance fee is 350 rubles ($10).



Sunday, Aug. 3


History lovers shouldnt miss the chance to see reenactments of World War I battles in Pushkin at noon. Besides exciting war scenes, visitors can enjoy live music, historical costumes, an equestrian show and a fancy-dress parade starting from the Moscow gates.


Garage Sale, the popular and growing flea market where nothing is priced over 500 rubles ($14.11), starts today at noon in Loft-Project Etagi, 74 Ligovsky Prospekt. Be sure to get in early to score a bargain. Entry costs 50 rubles ($1.40)



Monday, Aug. 4


Continue the working week with a calm and steady mind with a free yoga lesson at 7 p.m. in the Bukvoyed store at 23A Vladimirsky Prospekt.



Tuesday, Aug. 5


Visit The Romanov Dynasty doll exhibition today, where more than fifty porcelain dolls depicting Russian rulers, and made by Olina Ventzel, will be on show. The exhibition continues through Aug. 31 in Sheremetyev Palace, 34 Fontanka Naberezhnaya.



Times Talk