Russia and China to Build Oil Transshipment Complex in Russia's Far East

By Rhod Mackenzie

Russia's United Oil- and Gas-Chemical Co. (ONGK) and China's Xuan Yuan Industrial Development have agreed to jointly invest 5 billion yuan (£557 million) to construct a transshipment oil complex in the far east of Russia, according to the Roscongress fund.

The complex will enable Moscow to enhance its infrastructure and diversify commodity exports towards the east to reduce reliance on Europe, which is perceived as politically "unfriendly". The facility will also facilitate Russia's oil exports to China.

The project financing deal was signed at an economic forum organised by Roscongress in Vladivostok, a far-eastern Russian city.

It was announced that the funds would be raised through Russian and Chinese financial institutions.

The transborder complex will be established near a railway bridge over the Amur River, connecting Nizhneleninskoye in Russia to Tongjiang in China. This will be situated in Russia's Jewish Autonomous Region.

Roscongress has announced the development of five substantial infrastructure facilities. These facilities will comprise a terminal capable of storing, blending, and loading up to 5.8 million metric tonnes of crude oil and oil and gas condensate mixtures annually, and a depot that will contain vertical and horizontal tanks for receiving, storing, and distributing up to 1 million tonnes of petroleum products and fuel oil per annum.

These facilities will comprise a terminal capable of storing, blending, and loading up to 5.8 million metric tonnes of crude oil and oil and gas condensate mixtures annually, and a depot that will contain vertical and horizontal tanks for receiving, storing, and distributing up to 1 million tonnes of petroleum products and fuel oil per annum.

There will also be a complex for filling gas for the transportation of liquefied petroleum gas, capable of handling up to 650,000 tonnes of product per year.