Russia starts work on arctic oil pipeline

March 20, 2012 at 7:46 AM

MOSCOW, March 20 (UPI) -- An oil pipeline under construction in northern Russia aims to deliver oil from reserves in the Arctic Circle, an energy company executive said.

Russian oil pipeline operator Transneft announced that it started construction on a 303-mile pipeline from Siberia to a main hub. Igor Dyomin, a spokesman for the state-controlled pipeline company, told Bloomberg News the first few sections of the pipeline were welded already.

The pipeline would carry about 45 million tons of crude oil per year. That represents about 9 percent of Russia's total output of 10.3 million barrels per day achieved last year.

The $3.8 billion pipeline is expected to provide links to Asian or European consumers, Bloomberg reports. The first stage should be completed by 2014 with the final leg expected in service by 2016.

Related UPI Stories
Latest Headlines
Trending Stories
WikiLeaks offering $50K for video of Afghan hospital bombing
Murdoch sorry for implying Obama's not a 'real black president'
Hillary Clinton comes out against Trans-Pacific trade deal
Reid sues exercise companies over eye injury
Lumber Liquidators to pay $10M in DOJ settlement