The Skovorodino-Mohe pipeline is to be extended, the Russian Rosneft and Transneft reported. The major passage which delivers raw materials from Russia to China will have a facelift to increase the capacity. According to the sources familiar with the situation, the public companies have hammered out the deal in early October yielding fruitful results. The experts concluded that there is no need to build a new pipeline as it will be enough to only upgrade the pumping station. Commissioning of new capacities will thus contribute to higher pumping volumes.
The Transneft spokesman Igor Dyomin confirmed in the interview to the mass media that the meeting between the public companies did take place with the plans to increase the flow capacity via Skovorodino-Mohe pipeline on the agenda. No further information was disclosed. The money for the project will be allocated through the special oil shipping tariff. According to preliminary estimates, they will need around 53 billion rubles to facilitate the pipe and reshape infrastructure. The balance sheet sparkled serious severe disagreements among the two partners. Now Rosneft and Transneft are on the verge of a conflict. Rosneft has signed an agreement with PRC to ramp up the pipeline shipments in February 2013. Now Beijing gets 15 million tons of oil a year via ESPO spur. Under the new agreement, this amount will be doubled to 300 million barrels per day.
