TIANJIN, China, September 21 (RIA Novosti) - The Chinese government has never suggested cutting the price for oil to be supplied via the Eastern Siberia-Pacific Ocean (ESPO) oil pipeline, Russian Deputy Prime Minister Igor Sechin said on Tuesday.
"The Chinese party has raised no such issues," Sechin said after talks with his Chinese counterpart.
Russia and China have signed an intergovernmental agreement, under which Russia is to supply 15 million tons of oil per annum from January 1, 2011. Nine million tons of oil will be supplied by Russia's largest oil producer Rosneft, while another six million tons will be supplied by the country's oil pipeline monopoly Transneft.
A final deal on prices is needed before oil can start flowing to China via ESPO. Talks over the price of ESPO oil deliveries to China have dragged on for years, during which China has sought to diversify its energy sources.
In August, Russia completed a new section of the ESPO pipeline to northeast China, where China's China's oil and gas corporation CNPC operates refineries
Russia's largest oil company Rosneft and CNPC will invest $5 billion to build an oil refinery in Tianjin in northeast China, Sechin said on Tuesday.
"Under the agreements, a Russian-Chinese East Petrochemical Company, which will be the largest Russian-Chinese joint venture company, will be set up. Investment will amount $5 billion at just the first phase," Sechin said at a ceremony of laying the first stone of the refinery.
The first phase includes preparing of a feasibility study and building the plant. In the second stage, the joint venture will set up a filling station network in China
Rosneft had wanted the ESPO crude to be used for the Tianjin refinery, but CNPC has allocated it to its subsidiary Petrochina's refineries.
Russia would like to conclude a deal before President Medvedev visits China later this month.
