6 Sep 2017 14:16

Russia will not demand compensation from China for not fully using Skovorodino-Mohe pipeline

VLADIVOSTOK. Sept 6 (Interfax) - Russia will not demand compensation from China for not fully using the Skovorodino-Mohe oil pipeline, Russian Energy Minister Alexander Novak told journalists.

"The issue of compensation will not be addressed. We are working with our colleagues in a constructive manner. We understand their position and hope that they will soon move toward the full figures set in the agreement," he said.

"We expect the agreement will be completely fulfilled from January 1, 2018. Consultations are currently underway on the issue," he said.

Russia plans to export 30 million tonnes of oil to China in 2017, including 20 million tonnes via the Eastern Siberia - Pacific Ocean oil pipeline system, of which 16.5 million tonnes will go through the Skovorodino-Mohe pipeline branch and 3.5 million tonnes through the Port of Kozmino, the vice president of oil pipeline monopoly Transneft , Sergei Andronov, said earlier in an interview with corporate magazine Pipeline Oil Transport.

Another 10 million tonnes will be shipped through Kazakhstan.

Under intergovernmental agreements 30 million tonnes of oil per year are supposed to be delivered via the Skovorodino-Mohe branch from the ESPO pipeline starting in 2018.

Transneft is finalizing measures to increase the capacity of the oil pipeline and will be ready to transport 30 million tonnes along this route by the end of 2017. "According to the assurances of our Chinese colleagues, the oil pipeline on China's side will also be ready by the end of the year. However, due to the unreadiness of the oil refinery in China that will get oil along this pipeline, our Chinese partners have asked us to keep transporting oil through the Port of Kozmino throughout 2018," Andronov said.

"We are currently at the stage of agreeing on the volumes for next year under the intergovernmental agreements. Work on building the oil refinery will be completed next year and starting in 2019 we plan to transport 30 million tonnes per year along the Skorovodino-Mohe route as provided for by current agreements," Andronov said.