Russian oil company Rosneft said on Monday that it has agreed to extend its strategic cooperation with China National Petroleum Corporation (CNPC), including possible liquefied natural gas (LNG) projects.
In a deal signed by the two state-controlled firms on Monday, Rosneft and CNPC confirmed their intention to proceed with upstream projects in Russia, refining in China at the proposed Tianjin Refinery and other areas of cooperation.
The parties expect to make an investment decision in March 2016 regarding construction of the Tianjin Refinery. If that project goes ahead, the new facility is anticipated to be completed by the end of 2019.
To expand their cooperation, the two companies will explore the development of LNG projects with potential supplies from Russia to China.
Commenting on the strengthened partnership with CNPC, Rosneft head Igor Sechin said: "Russia and China are interested in deepening and expanding cooperation in the oil and gas sector. Our companies have created a favorable environment for cooperation and we intend to further promote long-term mutually beneficial collaboration."
The current cooperation between Rosneft and CNPC includes crude oil supplies from Russia under a long-term contract.
In addition to that, their joint venture Vostok-Energy is exploring for and producing hydrocarbons in the Irkutsk Region in East Siberia and another joint venture, Vostok-Petrochemicals, has been established to build the Tianjin Refinery and to sell refined oil products in China and other markets in Asia.