The official, who declined to be named, said, "We have not yet received an official announcement from the Russian side [and we will] neglect the media reports and would continue with work as planned."

"The Chinese and Russian governments are still keeping in close contact on the issue," added the official who also played down the significance of the competing Russian oil pipeline.

According to said official, "Beijing is diversifying its oil imports and actively searching for oil in overseas countries to satisfy its demands. [Therefore], China's energy supply will not be considerably affected, even if the project breaks down."

Reports in the media on Monday seem to indicate that China's Angarsk to Daqing pipeline project is doomed and that the route favoured by Japan - and Russia's Transneft - from Eastern Siberia to Nakhodka will be given the nod.