Russia Stakes Stronger Claim to Growing Chinese Oil Market Through SR-II
The second Sino-Russia oil pipeline (SR-II) will enable Russia to stake a stronger claim to the growing Chinese crude oil market, oil and gas analysts at BMI Research have stated in a new report.
This bigger market share for Russia will erode that of Saudi Arabia, whose export volumes ‘will remain under pressure over the coming months in line with the now-extended OPEC, non-OPEC supply cut’, the analysts added.
SR-II, which began operations a few days ago, will link oil from Russia's East Siberia-Pacific Ocean pipeline to the Chinese city of Daqing and run parallel to the existing SR-I pipeline that stretches from Russia's Skovorodino to China's Mohe County.
The new pipeline is expected to double China's oil import capacity from Russia to 30 million tons from 15 million tons per annum, according to BMI’s report.
In late 2017, OPEC and participating NOPEC countries agreed to extend production cuts to December 2018. A further meeting to evaluate this plan is expected to take place in June 2018.
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