Transneft Logistics, China's Sino Oil King Shine Chemical agree on chemical supplies

MOSCOW. June 2 (Interfax) - Transneft Logistics LLC, a subsidiary of Russian oil pipeline monopoly Transneft , has signed a cooperation agreement with Sino Oil King Shine Chemical under which it will be the exclusive distributor of the Chinese company's chemical products in Russia for three years, Transneft's in-house magazine reported.

The magazine reported Sino Oil King Shine Chemical executive director Xi Zuojia as saying that the company is entering the Russian market for the first time. The company currently supplies Chinese and foreign customers and produces 20,000 tonnes per year, but production capacity may be increased for Transneft orders, the magazine said.

Transneft Logistics CEO Denis Goltsman said the needs of Transneft companies will be met first. "However, we are already receiving requests from other oil and gas companies in our country. The success of the work we are doing should facilitate the constant growth of foreign contracts," the article said.

Sino Oil King Shine Chemical (KSCC), a subsidiary of China National Petroleum Corporation, makes chemical products used in the development and operation of oil and gas fields, hydrocarbon transportation and refining, such as various inhibitors, demulsifiers, paraffin deposit scrubbers and additives.