The first discussions of launching the ESPO pipeline started in the 1970s. Later, in 1996, on the initiative of the Russian president, Boris Yeltsin, Russia and China signed an energy agreement including plans for the ESPO pipeline. The original project of this pipeline was proposed by the Russian oil company
Yukos in 2001 as an independent oil pipeline. The project involved the building of a pipeline from
Angarsk, where Yukos operated a refinery, to
Daqing in northern China. At the same time, Transneft proposed an alternative project to pipe oil from
Taishet in
Irkutsk Oblast to the Far East port
Kozmino near
Nakhodka. In May 2003, the Russian Government decided to combine these projects and that Transneft would be in charge of the pipeline, while Yukos would supply the oil. On 29 May 2003, Russia and China signed an agreement on construction of the pipeline. Construction of the pipeline started in April 2006. On 4 October 2008, the section between Taishet and Talakan was launched in a reverse to pump oil from
Surgutneftegas-owned Alinsky deposit. The first stage of the pipeline was completely laid in May 2009 and the whole first stage was reversed in December 2009. The terminal at Kozmino was inaugurated by Russian prime minister Vladimir Putin on 28 December 2009. Construction of the second stage from Skovorodino to the Pacific Ocean started after launch of the first stage. The second stage was inaugurated on 25 December 2012.
China branch and
Hu Jintao In June 2009, Russia and China signed a deal to build the spur pipeline to China by which Russia supplies China with 15 million tonnes of oil () each year for 20 years in exchange for a loan worth US$25 billion to Russian companies Transneft and
Rosneft for pipeline and oil fields development. Construction of the spur to China started in the Russian territory on 27 April 2008 and in Chinese territory on 18 May 2009. The long section from Skovorodino to the
Amur River on Russia-China border was built by Transneft and the long section from Russia-China border to Daqing was built by the
China National Petroleum Corporation (CNPC). It was completed in September 2010. On 1 January 2011, Russia said it had begun scheduled oil shipments to China. ==Route==