Private pipeline to import Russian oil
By Li Fangchao (China Daily)
Updated: 2005-09-28 06:14

The four pipelines crossing through the river is encased in another big pipeline and will transport different oil products, which had been through the preliminary process on the Russian side, according to Song, who is closely involved with the pipeline project.

The Russian side has opened an office in Blagoveshchensk to deal with the construction and is responsible for searching for oil sources.

"Xinghe Industries does not have the right to import oil from Russia," he said. "It is just in charge of the operation of the pipeline."

An Zhaozhen, a researcher from the Russian Research Centre of Heilongjiang, welcomed the establishment of the pipeline as a "good move" for private companies in Heilongjiang to tap into the Russian markets.

"The oil products will be mainly provided to the users in Heilongjiang Province, so this pipeline is more of local significance," Song said.

Earlier this year, the province has called for more privately-owned companies as the main forces to exploit the Russian markets, according to An.

But Song Kui warned that Russia's new regulation on mines and resources may create more barriers for domestic companies to enter this field.

"The new regulation rules out the possibility for foreign companies, which does not have the identity of a Russian corporate body, to exploit Russian mineral resources," he said.

"That means Chinese companies will have to register another company in Russia in order to have the permission to exploit Russian mines."

He suggested lowering the threshold and giving more freedom to privately-owned companies to enter the energy fields.

Xinghe and Russian Lanta have established a joint venture in Russia.

(China Daily 09/28/2005 page3)

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