The first section of Russia's ambitious East Siberia-Pacific Ocean oil pipeline has been put into operation in Amur region. Aimed to diversify fuel export routes, it connects oil deposits in Siberia with Russian Pacific ports. Next year, the prospected amount of Russia's hydrocarbon potential will increase by 500 million tons of crude and by 650 billion cubic meters of gas, according to the Natural Resources Ministry.
The ESPO pipeline system, conceived as a major oil route to the Russian Far East and an export outlet to Asian Pacific markets, will link all domestic oil pipes to create a comprehensive network ensuring more effective distribution of oil flows in the eastern and western direction. Stretching for more than 4,770 km with the overall pumping capacity of 80 million tons a year, the ESPO is not only one of the most reliable pipelines ever built but also the most eco-friendly one with the lowest possible impact on the environment.
From June 2009, when the government zeroed out tariffs for East Siberian oil, commercial investments in the project have exceeded $10 billion.
Konstantin Simonov, director of the National Energy Security Fund, says Asian markets look very attractive for Russian oil exporters:
"Asian-Pacific countries are among the world's top consumers of primary energy. In 2008, the region accounted for 87% of the global increase in hydrocarbon consumption. The East Siberia-Pacific Ocean pipeline will be a major outlet for Russian oil to Asia. It's quite logical for our oil companies to expand their geography. East Siberian oil fields contain sufficient oil to export it to China, Japan and Korea, as well as other Asian-Pacific countries boosting their primary energy demand".
Construction of the second section of the ESPO will begin in January 2010 and is set to be completed in 2012. Once fully operated, the pipeline will enable Russia to essential reduce its dependence on European fuel markets.
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