UPI Energy Watch

Russia's Railways to invest more than $407M in railways to China

Russia's Railways plans to invest more than $407 million to build railways to China, a company official told Itar-Tass on Wednesday.

"The implementation of the investment project 'Oil Transportation to China' envisages the use of exactly such funds," the official explained.

In his words, the project envisages the reconstruction of the Karymskaya-Zabaikalsk railway stretch in order to provide for growing cargo transportation along this section.

The question is mainly about the construction of the second train track on railroad hauls and the development of railway infrastructure, the official said.

The company plans to complete the first stage of the project this year, the official said, adding this work will include the modernization of communications, the automatic lock-out systems at railroad hauls and the interlocking of points at the Olovyannaya-Borzya railway stretch.

In addition, this year the company plans to set more than 25 kilometers of continuous welded rails, reconstruct the first main track in the Karymskaya-Borzya stretch, and build a locomotive shop and a facility for passenger coach reshuffle at the Zabaikalsk railways station, the official said.

Russia's Railways company also plans to build 1,700 square meters of service housing at the stations of Mogoitui and Andrianovka, the company's official said.

Russia invites Ukraine to develop oil, gas fields

Russia is inviting Ukraine to jointly develop oil and gas fields in both countries, Russian Prime Minister Viktor Zubkov said.

"Our proposals to Ukraine do not cover only transit, but also the joint development of reserves of hydrocarbons in both countries involving an exchange of comparable assets," he said at a Wednesday briefing in Moscow following talks with Ukrainian Prime Minister Yulia Tymoshenko.

Zubkov also confirmed the understandings between the two countries on gas.

"We confirmed our common adherence to the strict implementation of the understandings of our presidents in this sphere," he said.

"Our reliable interaction in the energy sector is a guarantee of the successful development of the two countries and our common contribution to the energy security of Europe," Zubkov said.

Kazakhstan asks U.S.-led venture to dispose of sulphur waste

The Kazakh government has instructed the TengizChevroil limited liability partnership to draw up a program of full disposal of accumulated sulphur as soon as possible, Kazakhstan Today reported.

This instruction was given following a meeting between Kazakh Environmental Protection Minister Nurlan Iskakov and the leadership of the limited liability partnership on Tuesday, Kazakhstan Today reported.

"During the talks, the parties discussed issues of accumulation and open storage of large amounts of sulphur, as well as reduction of flaring gas," a press release says.

"Following the working meeting, the TengizChevroil limited liability partnership was instructed to draw up measures to stop flaring gas and a program of disposal of sulphur taking into account full disposal of accumulated sulphur as soon as possible, in view of targets of transition to sustainable development," the press release stresses.

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Closing oil prices, Feb. 21, 3 p.m. London

Brent crude oil: $98.25

West Texas Intermediate crude oil: $99.49

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(e-mail: energy@upi.com)