OIL

China and Russia form tighter energy links

CHINA and Russia have agreed to strengthen energy cooperation, including boosting Russian oil exp...

China and Russia form tighter energy links

Chinese Prime Minister Wen Jiabao said on Monday that oil exports by rail from Russia, the world's second-largest oil exporter, to China, the world's second-largest oil consumer, would rise to about 10 million tonnes (or 200,000 barrels of oil per day) during 2005 and 15 million tonnes in 2006.

"We have reached important consensus on energy cooperation. Energy cooperation between China and Russia is of equal and mutual benefit," Wen said.

He also said that Russia would give priority to China in supplying oil through a planned Siberian pipeline.

Russia had previously chosen a competing Japanese plan that would have bypassed China, with a pipeline running to the Pacific. But Moscow later agreed to add a branch line to carry crude to China's northeast.

"The Russian government and President [Vladimir] Putin have made it very clear that first consideration will be given to China when they build the Siberian oil-gas pipeline," Wen said at a news conference.

China's total crude imports from Russia have soared 105% during the past 12 months to about 10.77 million tonnes.

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