Riding on the expectation of rising energy demand in the World’s two largest populated nations China and India, Russia will be soon connected with these two geographies through a common oil pipeline with an investment of about $ 30 billion.
Talks on the construction of the Russia to India oil pipeline project should conclude by mid-2014, according to officials from ONGC. Russia is changing its energy export policy vector as strong demand for hydrocarbons, both in China and in India, one of the largest economies in the world, continues to grow. The benefits are obvious, including those in connection with India’s plans to become a member of the Shanghai Cooperation Organization (SCO). China supports the pipeline oil supplies to India, which is not surprising. One of the project’s options is the construction of a pipeline from the Altai region through the north-west of China to the north of India. Director of the Center for Strategic Studies in Energy of the People’s Republic of China, Xia Yishan says, “The project is beneficial for both India and China, as it would allow China to become an oil transit in addition to its ‘status’ of recipient of the Russian oil.” For Russia, the project’s additional benefit is providing oil to the SCO market.
EPC World News Bureau
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