Russia, China to Tie Amur Refinery to Heihe City

July 11, 2014

Russia and China are creating an energy company, "Menglan Sinhe", which will construct processing, storage and transport  infrastructure to channel refined oil products from Russia's planned Amur Refinery to the City of Heihe in northeastern China. To accomplish the project, three Chinese companies and a Russian company are jointly investing 7.76 billion yuan ($1.26 billion).

According to the Management Committee for the border economic cooperation zone of the City of Heihe in Heilongjiang Province, Northeast China, the plan calls for the Russian company to begin construction this year. Russia will then hand off the construction operation to China in May of 2015. The agreement makes the Russian side responsible for all construction works around the Amur refinery and transport links that traverse Russian territory. China will work on pipeline infrastructure on its territory and build the oil terminal at Heihe, according to Xinhua information agency.

LLC "Amur Energy Company" meanwhile is developing design estimates of Amur refinery , which is planned to construct in 2017, according to Amur regional government spokesmen. The project envisages the construction of a refinery processing capacity of up to 6 million tons per year , and the product pipeline for pumping oil to China route Beryozovka - Upper Argun with border crossing across the Amur .  It is expected that the refinery will produce diesel, gasoline to European standard , kerosene, liquefied petroleum gases , tar and, if necessary , jet fuel, and bitumen .The Amur Energy Company is controlled by the Chinese Energy Joint Stock Company Meng Xin Lan Ho.

Source: OGE Combined Reports, 2014.