CNPC and Yukos In Talks to Build Russia-China Pipeline

CNPC and Yukos are in the final stages of talks for the construction of a pipeline linking Russia and China. Approval for the deal is expected in December of this year and the cost to build the pipeline is estimated at $2.5 billion. If the deal goes through construction would start in 2003 and be completed by 2005.

The pipeline will span 2,260 kilometers from Russia's Angarsk field in the southeast to China's Daqing oil field in the northeast, with 760 kilometers of the pipeline located in China. Once the pipeline has been completed it will carry crude at an initial annual volume of 20 million metric tons, about 25% of the crude China is expected to import by that time. The volume will be expanded to 30 million tons by 2010.