China and Columbia have signed an agreement to jointly finance construction of a new oil pipeline.
According to Colombian Mining and Energy Minister Mauricio Cardenas, President Juan Manuel Santos signed an agreement to develop the pipeline during his recent state visit to Beijing. Upon completion, the pipeline will send at least 300,000 barrels of oil daily to Colombia’s Pacific coast for export by ship to energy-hungry China.
Cardenas claimed the deal involved the China Development Bank, Sinochem, a subsidiary of Sinopec Group, and Colombian state-owned oil company Ecopetrol. However, the minister was keen to expound the non-exclusivity of the deal, saying that once a route is established for the pipeline, the bank would finance it and Sinochem would be invited to take part.
The annoucement comes at the same time as PetroChina agreed to purchase Valero Energy’s Aruban refinery, further ensuring energy supplies to the world’s second largest oil consumer.