Russia’s Rosneft, China’s CNPC to increase refining, LNG collaboration

Rosneft and Chinese National Petroleum Corp. (CNPC) signed an agreement for the extensions of strategic cooperation, the companies announced this week.

The document was signed by Rosneft head Igor Sechin and CNPC vice president Wang Dongjin. The signing ceremony was led by the Prime Minister of the Russian Federation Dmitry Medvedev.

The agreement envisages elaboration of current and potential strategic cooperation areas. The document also foresees the fueling of a deeper collaboration in these areas.

In particular, the parties intend to proceed with upstream projects in Russia, refining in China (Tianjin refinery) and other venues of cooperation. In March 2016, the parties are expected to make an investment decision regarding the Tianjin refinery construction which may be completed by the end of 2019.

The parties also intend to apply joint efforts with the scope of further expansion of strategic cooperation, including in the areas of the development of LNG projects, which embraces potential Russian LNG supplies to China.

“Russia and China are interested in deepening and expanding cooperation in the oil and gas sector," said Sechin. "Our companies have created a favorable environment for cooperation and we intend to further promote long-term mutually beneficial collaboration”.