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Russia appears to be prioritising the Yukos-backed 600,000 b/d Angarsk-Daqing pipeline to China, following a long period of ambivalence about far east export options. But it is expected to continue talking to Japan about a rival pipeline route to the far east port of Nakhodka
The government is due to define its preferred route next month, but officials from pipeline operator Transneft acknowledged last week that the 1mn b/d Angarsk-Nakhodka project is not feasible. Transneft, the most consistent supporter of the route, says there will simply not be enough crude to make the pipeline profitable.
The $5.3bn Nakhodka link was a geopolitical project rather than an …