Russia temporarily halted oil pipeline deliveries to China, as well as some rail shipments of crude, after an earthquake, Russia's state pipeline operator said Friday.
Russia
temporarily halted oil pipeline deliveries to
China
, as
well as some rail shipments of crude, after an earthquake,
Russia
's
state pipeline operator said Friday.
A pipeline link that normally delivers more than 300,000 barrels of crude a day
to
China
was
halted for several hours as a precaution, a spokesman for OAO Transneft
(TRNFP.RS) said Friday. Transneft initially suffered a power outage at its
facilities in Skovorodino, near the Chinese border, but the company spokesman
and
Russia
's
electricity grid company confirmed that all power has been restored.
Crude shipments via rail to
Russia
's
Far
East
port
of
Kuzmino
were
also interrupted Friday, but loading of trains later resumed, Transneft said.
China National Petroleum Corp. had no immediately comment on the interruption.
Russia
's
Emergency Situations Ministry reported an earthquake with a magnitude of 5.9 in
the Amur region near
China
. OAO
Russian Railways said the earthquake damaged several of its cable-bearing
pylons in the Amur region, prompting a halt of a cargo trains for about an
hour.
The Transneft pipeline that was affected by the earthquake extends from
Skovorodino to the Chinese oil production and refining hub of Daqing, about
1,000 kilometers away in the northeast of
China
.
Under a loan-for-oil deal that the two countries signed last year,
China
is
providing
Russia
's
state-owned oil producer OAO Rosneft (ROSN.RS) and Transneft with $25 billion
in long-term capital. In exchange,
Russia
will
export 15 million tons of crude to
China
a
year for 20 years from 2011 through the pipeline.
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