CNPC to Construct the Chinese Section of Angarsk – Daqing Pipeline Project

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Researched by Industrial Info Resources (Sugar Land, Texas) -- It is reported by China National Petroleum Corporation (CNPC) (Beijing, China) that its China Petroleum Pipeline Engineering Company will invest $1.06 billion to construct the section of the Russia – China Pipeline that is on Chinese territory. The construction of the pipeline will be in Heilongjiang Province, and the total length of the pipeline will be 965 kilometers.

The starting point of the Russia – China pipeline is Angarsk in Russia and it terminates in Daqing, China. It is therefore also referred to as An-Da Line. The total length of An-Da line is 2,400 kilometers. According to the agreement, Russia and China will be responsible for constructing pipelines that are within its own borders. The estimated cost is $2 billion. The initial transmission capacity through the pipeline is 15 million tons per year.

The Chinese section of the pipeline project is located in China’s northmost Heilongjiang Province. It starts at Lianfu in Mohe County and ends at Linyuan in southern Daqing City. The pipeline is 965 kilometers in length and uses normal temperature custody transfer technology.

It is also reported by Financial Times that CNPC has already entered into the Russian oil industry with initial success. During the auction of two oil and gas fields in East Siberia, just outside the Chinese border, CNPC won over Russia’s national oil company, Rosneft (Moscow, Russia). After years of deliberation, the Russian government has agreed to build a pipeline to transmit Russia’s export oil directly into China.

CNPC will pay for the construction of this 965-kilometer pipeline and connect it to Russia’s East Siberia – Pacific oil exporting system that is currently being constructed. Russian Energy Minister Vikor Khristenko noted the side line to China will be ready for use by the end of 2008.

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