Important Strategy——Constructing Russia-China Oil Pipeline

Based on a brief analysis on actualities of the petroleum production and supply in China, this article stresses that China, especially for Sinopec, will face a long-term dependency on imported petroleum in the future, and this dependency will be more and more remarkable. Currently in China, all the imported oils are shipped inside solely by seaway, which will be more and more disaadvantageous to both the security of the entire economy of China and the survival and development of Sinopec in the future. Building up a crude oil pipeline between (eastern part of) Russia and China will open up a significant continental passageway for China to import oils in the future, which will benefit to further optimizing the energy structure of China, meet the oil supply demand of north China and other inland areas, and enhance the overall distribution of existing pipeline networks located in the eastern part of China, and will become an effective way for China to ballance the risk of market and to damp potential international speculations in international oil trading.