China fears over Siberia pipeline
By Francis Markus
BBC correspondent in Shanghai
Beijing is concerned Russia may be deciding against a $2.5bn pipeline to carry oil from Siberia to north-eastern China, Chinese state media reports.
Moscow has said it favours instead a pipeline to the Pacific to serve the needs of Japan and the US market.
China has now overtaken Japan as the world's number two oil importer after the United States.
Observers believe the issue could become the focus of energy tensions in the region for several years.
Yukos factor
China is this week hosting delegations from both Russia and Japan among the six parties involved in talks to try to resolve the North Korean nuclear stand-off.
But far away from the crisis diplomacy, the three countries are actually locked in a fierce strategic battle over the rich oil reserves of Siberia and the signs are not looking good for China.
Late last week, Russia's energy minister, Igor Yusufov, said that Moscow was close to a decision to build a pipeline to the Pacific coast to serve Japan's needs and the US market, rather than a rival project into north-eastern China.
This will not have come as a surprise to Chinese officials because there have been growing signs that Moscow is thinking that way.
But Chinese oil executives are not yet admitting defeat.
Analysts say one factor behind Russia's apparent backing-away from the Chinese pipeline may be that it was championed by the Russian oil giant Yukos.
Its former head, Mikhail Khodorkovsky, remains in jail on fraud and tax evasion charges in what many see as a highly-politicised case.
Japan offer
Then there are also the fears, particularly in Russia's sparsely-populated far east, about China's perceived threat to the region.
Moreover, Japan is reported to have offered big financial incentives and the prospect of significant energy co-operation with Russia.
All in all, whatever the outcome, the issue could become the symbol of growing tension among the three countries over oil resources in coming years.
Story from BBC NEWS:
http://news.bbc.co.uk/go/pr/fr/-/2/hi/business/3516129.stm 
<img src="/images/graemlins/blush.gif" alt="" /> <img src="/images/graemlins/blush.gif" alt="" />