Deals to Import Crude Oil to China Finalized
In the efforts to expand the energy trade between china and Russia, Russian Prime Minister Dmitry Medvedev signed a billion dollar deal to supply oil to china. the two countries have also agreed to jointly finance and build an oil refinery in the east of Tianjin.
Based on the signed agreement Rosneft, Russia’s largest oil producer will also be supplying china and additional 70 million barrels of crude oil for at least ten years. this shows that both countries have reached a brand new level of cooperation as both parties are willing to work together for greater benefits. Next to United States, China is one of the fastest growing energy market in the world and recent reports have showed that it china took the number one spot as the biggest importer of crude oil.
The Russian oil company will be operating two set of pipelines. One will be used to transport oil and the other pipeline will be using in moving natural gas to the Tianjin refinery a plant that has the capacity of holding 110 million barrels of imported oil and gas.