Russia-China oil pipeline opens

Ref: The first oil pipeline linking the world`s biggest oil producer, Russia, and the world`s biggest consumer of energy, China, has begun operating.

The pipeline, running between Siberia and the northeastern Chinese city of Daqing, will allow a rapid increase in oil exports between the two countries.

Until now, Russian oil has been transported to China by rail.

Concentrated in western Siberia, Russia`s network of pipelines for oil exports has so far run towards Europe.
Russia is expected to export 15m tonnes of oil through the new pipeline each year – about 300,000 barrels a day.

The project cost $25bn ($16bn) and was partly financed be Chinese loans.

Russia overtook Saudi Arabia as the world`s largest oil producer in 2009.

China surpassed the US as the world`s largest consumer of energy last year.

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