China will help pay for Russia’s first liquified petroleum gas (LPG) terminal on its Pacific coast, shipping news site Marine Link reports.
The aim is to complete a project that started five years ago but was suspended for lack of finance at the port of Sovetskaya Gavan by a Russian company Remstal.
Chinese petrochemical company Haiwei will contribute $77.6m to the scheme, which is expected to cost about $335m.
The Russian Direct Investment Fund will make up the difference.
The agreement was signed ahead of President Vladimir Putin’s visit to China earlier this month.
The terminal will allow Russia to sell LPG to customers in east and southeast Asia, but the principal market is expected to be China, the world’s largest importer of LPG.
According to customs data, China’s imports of LPG were 3 million tonnes in March, a 46% rise from the previous month. At present, 1.6 million tonnes of this demand is met by US suppliers.
Russian LPG exports to China have been rising in recent years, but are limited to rail and road.
A sea terminal is expected to increase flows of the commodity.
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