Both Japan and China have tried to persuade Russia to give them priority as the pipeline's route is planned. Russia agreed last year for the pipeline to go from eastern Siberia to Perevoznaya on the Pacific coast — an apparent victory for Japan, which wanted to be the first in line for Siberian crude.
But last week Moscow signed off on the first stage of the project which will cost $6.5 billion and carry 600,000 barrels per day to Skovorodino, just 40 miles from the Chinese border in Russia's Amur region.
"We are building to Skovorodino, but at the same time we are building a port in Perevoznaya," said Sergei Grigoriev, vice president with pipeline operator Transneft.
The decision has stoked Japanese fears that the Russians will not be in a hurry to extend the pipeline to the Pacific coast as planned, instead favoring a spur that would dip south to the northeastern Chinese city of Daqing — the center of its oil industry. The Russians say rail shipments will bridge the gap for the Japanese until the pipeline can be completed.
I want Japan to win this struggle. I don't want China gaining a supply of oil out of our reach. Nor do I want China to think of Russia as a crucial supplier that might tempt China to view Russia as a target. And I'd like Japan and Russia tied together a little more to pull Russia into our alliance against China.
The Great Game continues in Asia and we are only one player. Russia, Japan, China, and India are the big guys with Australia an important country as well despite its small population. If we play our cards right, China will be the odd man out.
