China takes on more Russian oil and gas

June 25, 2013 at 8:17 AM

ST. PETERSBURG, Russia, June 25 (UPI) -- China National Petroleum Corp. said it brokered an agreement to get more oil and natural gas supplies from Russian companies.

CNPC said it signed a long-term agreement with Rosneft to increase the volume of oil delivered through the Russia-China crude oil pipeline from 109 million barrels annually to 219 million barrels by 2018.

The Chinese oil company added it was able secure more oil deliveries from a pipeline through Kazakhstan and from a refinery planned for northern China.

CNPC said future combined imports of oil from Russia will hit 338 million barrels per year under the terms of the deal.

CNPC said Monday its chairman, Zhou Jiping, made the deals following "extensive and friendly communication with his counterparts in Russian energy sector to promote oil and gas cooperation."

CNPC added it took a 20 percent stake in a liquefied natural gas plant planned by Russian gas producer Novatek on the Yamal Peninsula. CNPC said the facility would eventually produce 16.5 million tons of LNG per year.

The deals were signed last week in St. Petersburg.

China is expected to lead the world in terms of energy consumption growth.

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