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Supplying Russian crude to India by sea will be cheaper than constructing an oil pipeline to the country via China
Supplying Russian crude to India by sea will be cheaper than constructing an oil pipeline to the country via China, a Russian energy ministry spokesman said Wednesday at an energy forum in Shanghai. The third Russian-Chinese-Kazakh oil and gas forum under way in Shanghai has focused on the construction of an oil pipeline to link Russia and China via the Altai Republic in southwest Siberia, and on to India, bypassing the Tien Shan mountain range, a project eagerly awaited by India. But Vladimir Sayenko, head of the Russian ministry's energy policy department, said that although the project could be effective, "oil shipments to India by sea will be cheaper." "By our estimates, the oil balance is not so stable in Russia, and we could even face an export capacity surplus," he said. The three-day forum, aimed to discuss cooperation and investment projects, involves Russia's Gazprom, Rosneft, and LUKoil, Russian-British TNK-BP, Kazakhstan's KazMunaiGaz, FIOC, Maersk Oil Kazakhstan, KazTransOil, and KazMorTransFlot, China's CNPC, Sinochem, Sinopec, CNOOC, and several other companies from the three neighbors.
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