Daquing petrochemical projects postponed by Russian Government

Work on two petrochemical projects to alter the northern city of Daquing into the China's petrochemical industry capital, with oil supplied through the Far East pipeline has been postponed. This is the result of the Russian Government' decision to change the Far East pipeline route from Russia. The about US $2.5 billion proposition that was to be complete this year is considered to have selected Daqing as the destination for the Yukos-planned pipeline from the eastern Siberian city of Angarsk as per the original plan announced in May. The approximately 2,400 km long pipeline was to carry about 30 million tpa of crude to China meeting a third of the nation's demands. However, in the course of 2004, the Russian government changed its plan, making the route leading to the Pacific coast topmost priority for construction of the Far East pipeline. Though China still remains a possible destination for Russian oil, and long-term plans for the pipeline do include Daqing, the Russian government has not yet disclosed its final decision on the projects.