18 February 2009 09:52 [Source: ICIS news]
By Judith Wang and Dolly Wu
SHANGHAI (ICIS news)--China will provide a $25bn (€19.8bn) loan to Russian firms in exchange for a supply of ?xml:namespace>
The construction of a key pipeline project between the two countries was also finalised, the source said.
Under the loan deal signed on 17 February,
The agreement would also include the construction of the long-awaited extension of
The project, which was agreed late last year, will see the extension of the pipeline from the Siberian city of
“On the Chinese side, PetroChina is a major operator in this deal. First off, we will be in charge of building the pipeline,” a source from PetroChina told ICIS news.
State-linked oil major PetroChina signed the agreement with Transneft on the design, construction and operation of the pipeline and penned the long-term crude oil trading agreement with the two firms, according to PetroChina’s news website.
“It is good news for our country, and also a boost for the energy cooperation between
A memorandum of cooperation in the energy sector signed in
However, talks were suspended on 12 November because of divergence of views on lending rates and loan guarantees, China Daily said.
“The deal means that
“PetroChina’s profit will increase by around (yuan) CNY4bn ($585m) a year as a result of the deal,” he said.
The Sino-Russian deal is part of a longer term strategy by energy-deficient
In related news,
The move aims to alleviate the inventory pressure of domestic refineries during the economic slowdown, according to the website of China State Reserve Bureau.
The existing reserve system comprises four areas, including the national strategic oil reserve, local oil reserve, large enterprises’ oil reserve for commercial usage and smaller companies' reserves, according to the website.
So far, the targeted goal for the national strategic oil reserves has been achieved, the website said.
The inventory of commercial refined oil, which includes stocks held by
“Further development on the oil products reserves should be one part of the petrochemical stimulus package, which may be announced in the near future,” said an industry insider, adding that
Both PetroChina and Sinopec have increased crude oil and oil products storage in line with strategic objectives.
Sinopec, Asia's top refiner, has set up the Sinopec Commercial Crude Reserve Center, the first of such kind in China, which will manage the financing of oil purchases and their flow in and out of the storage facilities.
PetroChina said it plans to build commercial tanks which can hold 40m cubic meters of crude oil and oil products in 2009.
“Site selection is ongoing at present. Two sites have been selected - Qinzhou at Guangxi province in southern China and Dalian at Liaoning province in northeast China. Another site in Tianjin is under consideration,” an official from PetroChina said in Mandarin.
?xml:namespace> ($1 = €0.79/$1 = CNY6.84)
($1 = €0.79/$1 = CNY6.84)
With additional reportint from Dolly Wu
To discuss issues facing the chemical industry go to ICIS connect
For the latest chemical news, data and analysis that directly impacts your business sign up for a free trial to ICIS news - the breaking online news service for the global chemical industry.
Get the facts and analysis behind the headlines from our market leading weekly magazine: sign up to a free trial to ICIS Chemical Business.
|ICIS news FREE TRIAL|
|Get access to breaking chemical news as it happens.|
|ICIS Global Petrochemical Index (IPEX)|
|ICIS Global Petrochemical Index (IPEX). Download the free tabular data and a chart of the historical index|
Asian Chemical Connections