Russia pipeline stuck on oil supply

MOSCOW, April 10 (UPI) -- Russia is expected to delay construction of the second section of the East Siberia pipeline by "three or four years" because of a lack of oil supply.

"Failure to meet mineral base targets may delay the construction of the second phase of the pipeline by three or four years at best," said Sergei Fyodorov, head of the geological and minerals resources department in the Russian Ministry of Natural Resources.

The second leg of the pipeline would have a capacity of 366.5 million barrels per day, running from Skovorodino in the Russian Far East to the Kozmino Bay terminal.

RIA Novosti reports Kozmino was to open next March.

"The decision on the second leg will depend on how well the first leg is filled up," said Sergei Grigoryev, vice president of Russian pipeline monopoly Transneft. The first pipeline has a 220 million bpd capacity, running from Taishet, in southeast Siberia, to Skovorodino.

Russia wants the pipeline to supply 6.5 percent of Asian crude demand.