Maomin is a brand new industrial city built out of nowhere. It is now a major, large petrochemical center in the South China.
| Maomin 茂名市 |
| Saturday, June 24 2006, 01 PM China Doesn't Wait for East-Siberian Pipeline to Buy Russian Oil Starting in June, oil will be delivered on the oil refining factory Maomin in the Southern Chinese Province of Guangdong. About 130 thousand barrels of oil per day will be delivered to China. Vladivostok, PrimaMedia. The Chinese oil-and-gas corporation Sinopec intends to conclude its $3 billion contract to purchase oil from the Ural region of Russia, as the business journal Vzglyad reports. Sinopec will buy the Russian oil at the London oil stock exchange. Starting in June, oil will be delivered on the oil refining factory 'Maomin' in the Southern Chinese Province of Guangdong. About 130 thousand barrels of oil per day will be delivered to China. Oil originating in the Urals is currently in demand in the Asian-Pacific market because of its lower cost in comparison to world prices for oil of similar grade. Alexander Razuvaev, chief analyst for Megatrustoil Co., said that China has 'switched demand from oil of Brent grade to the Russian raw material.' In Razuvaev's opinion, this factor may reduce the difference in price between Ural oil and Brent. 'In the near future we may see Brent at 80 dollars per barrel,' said Razunaev. Despite the fact that Urals oil is inferior in quality, it is quite a good product.' China has recently begun to dictate price dynamics in the world market of raw material. In the estimation of OPEC experts, in 2006 the Chinese Peoples' Republic will increase oil consumption by 5.9 %, or .39 million barrels a day � an increase of almost 7 million barrels. In 2005 China imported from Russia 12.78 million tons of oil. This was 18.6% more than the prior year. Peking cannot buy additional volumes of oil in Russia. Terminals and the railway are completely loaded. "Therefore oil will be bought in Europe, and then will be delivered to China by tankers. There is no other way until the East-Siberian oil pipeline is completed," said Dmitry Mangilev, an analyst for Prospect Co. |
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Where is Maomin? Maomin is a brand new industrial city built out of nowhere. It is now a major, large petrochemical center in the South China.
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| Oil Gas |