China wants Russia to expand its oil supply through Kazakhstan

Authorities in Beijing have proposed that Moscow expand its oil supply going to China through Kazakhstan by 2.5 million tons per year, as reported by the Interfax news agency, citing Deputy Prime Minister of Russia Alexander Novak.

«This is a proposal by the Chinese side, and we are ready to deliver this new supply once all necessary technical issues are resolved,» Novak said.

He also noted that before any firm decision, preliminary work in the sphere of expanding pipeline capacity should be completed, and this «work is already underway.»

In early May, the Russian government approved the text of a protocol on amending the intergovernmental agreement between Russia and China on expanding cooperation in oil trade, signed on March 22, 2013.

According to the document, the top priority route for oil exports is the pipeline that runs from Skovorodino in the Amur Oblast of Russia to Mohe in the Heilongjiang province of China. However, the document allows the parties to choose any other routes for oil supply exceeding an agreed amount (7 to 10 million tons since January 2014) to supply oil refineries in Western China.

Under the protocol, the total amount of Russian oil exports to China may be expanded to 12.5 million tons per year until 2034.