China's overland Silk Road and Maritime Silk Road Thread

Hendrik_2000

Lieutenant General
So both gas and oil pipeline is now operating. Notice the sourgrape comment by this author Ofcourse it benefit China but once the oil flowed Myanmar will get steady stream of income to fund their economy growth
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Parallel to the oil pipeline of Maday, another link has been functioning since October last, from the sea port of Kyaukpyu, which is dedicated to methane. This pipeline has already transported to China four billion cubic meters of methane from both Burmese and Middle Eastern (Qatari) sources.

The $2.5 billion invested into the pipeline have been entirely covered by the giant state-owned oil company, China National Petroleum Company (CNPC), which owns this key infrastructure. But the project has not gained acceptance from all of the concerned parties. The Burmese locals have resented what they see as inadequate compensation for the expropriation of farmers affected by the building of the pipeline. They also resent the fact that almost all of these riches associated with the project are heading to China through their territory, depriving Myanmar of any gains from this potentially valuable development tool. Others lament the limited effort to protect the environment during the pipeline’s construction. But all of these hard feelings disappeared once China promised to hand over a total of 53 billion dollars in royalties in 30 years to the government of Myanmar. And the local Myanmar armed factions were pacified by $25 million in schooling and other social development projects. Some 10% of the gas is supposed to stay in Burma, but none of the oil, as the refining facility will be built in Kunming, at the end of the line, with a capacity of 10 million of tons of crude oil.

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The project is concluded, but this does not mean that the local Burmese opinion is happy about such Chinese infrastructure building or about Myanmar’s collaboration on such undertakings with its giant neighbour? Accusations of resource plundering are still rife. In 2011, another giant Chinese project was temporarily put on ice for now by massive social protests. That project was the huge Myitsone dam, whose power output (100 billion of KW/h per year) was to go entirely Yunnan. Its fate is not yet entirely decided, but in a hint of things to come, up to 45.000 villagers have been relocated.

Another even bigger behemoth project is now in the works, a railway line is being discussed, which will follow the route taken by the pipelines. This project has a price tag of $20 billion dollars and would allow China to more easily import Burma’s precious wood and all sorts of other commodities, while also facilitating the flow of Chinese workers to the coast. As of now, no decision has been taken, but given Beijing’s leverage, the construction of the new railroad seems to be foregone conclusion.
 

PiSigma

"the engineer"
It is good that China is helping Pakistan to grow. But there is really very few benefit for China aside from preventing Pakistan from becoming fail state and therefore become the hot den of radicalism Of course the geo strategic benefit of side lining the Indian is added plus. The only benefit I can see is providing land locked Xinjiang with access to sea.

Myanmar on the other hand is close to China and very poor country. But unfortunately the elite want to curry favor with the west and side line China to their own detrimental
China import roughly 9 million Barrel of oil perday . So this 400,000 barrel per day Oil pipeline is a drop in the bucket but combined with oil pipeline from Kazakhstan. it help reduce dependence on Malacca strait

China Opens Delayed Myanmar Oil Pipeline to Get Mideast Crude Faster
Bloomberg News
April 10, 2017, 11:42 PM CDT April 11, 2017, 2:18 AM CDT
  • Pipeline operations start as crude unloaded at Made Island
  • Tanker United Dynamic arrived from Turkey on April 9: data
A crude pipeline to southwestern China through its neighbor Myanmar began operations after years of delays, allowing the world’s second-biggest oil user to receive supplies faster from the Middle East and Africa.

A Suezmax-sized tanker, which can hold 140,000 metric tons (about 1 million barrels) of crude, began offloading oil for the pipeline on Monday at Myanmar’s Made Island,
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to China’s official Xinhua News Agency. Operations on the line, which was completed in 2014 and
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scheduled to start the same year, are beginning after the government of Myanmar agreed to lower transit fees, Wang Dongjin, president of PetroChina Co.,
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last month.

1000x-1.png

The link, which allows China to import crude from the Middle East and Africa without having to ship through the Straits of Malacca and into the South China Sea, is part of President Xi Jinping’s "One Belt, One Road" infrastructure and trade development plan stretching across Asia to Africa and Europe.

"It may send a message to those countries that are still hesitating about whether to participate that the initiative is China’s top national strategy and can bring economic benefits to participants," said Fan Hongwei, an international relations professor at Xiamen University who specializes in Myanmar.

Trial operations began in
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on the 771-kilometer (479-mile) pipeline, which is designed to carry 22 million tons of crude a year (about 442,000 barrels a day). Myanmar can take 2 million tons of crude annually from the line, Xinhua reported.

For Myanmar, the initial benefits are probably minimal, said Suresh Sivanandam, a senior research manager for Asia refining at Wood Mackenzie Ltd. The country may get a small amount of oil and some revenue from oil storage and pipeline tariff fees, while experience from China in building energy infrastructure will be a boon for the country later, he said.

Myanmar Benefits
“Myanmar is growing very fast, and sooner rather than later they might need more oil refineries,” Sivanandam said. “The process of building energy infrastructure should help them in the long run to meet growing domestic demand.”

The Suezmax tanker United Dynamic arrived at Myanmar around April 9 after loading oil from the Baku-Tbilisi-Ceyhan terminal in Turkey on March 5, according to
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data compiled by Bloomberg.

The pipeline ends in China’s Yunnan province, where PetroChina has built an oil refinery with the capacity to process 13 million tons a year (about 261,000 barrels a day) of crude. China’s biggest oil and gas company is in talks with Saudi Arabian Oil Co. about investing in the plant, which will begin operations in June, Wang said last month.

PetroChina finished building the refinery in the provincial capital Kunming about six months ago and has been waiting for pipeline deliveries to start, according to Sivanandam. It will take about 12 million barrels of crude to fill the pipeline before deliveries can start, he said.

Refinery Output
Once the refinery begins, it will sell products in southwest China, displacing gasoline and diesel from refineries in central and southern China, he said. That will likely increase the country’s net exports of refined products, which rose to a monthly record of 2.85 million tons in November.

China and Myanmar on Monday signed an agreement on the pipeline, as well as eight other cooperation documents, after talks between Xi and Myanmar President Htin Kyaw, who is visiting China from Thursday to Tuesday, state-run China Daily
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.

China’s crude imports rose almost 14 percent last year, the fastest annual pace since 2010, and touched a
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in December of 8.6 million barrels a day.

“It opens another channel for China to diversify oil imports,” said Tian Miao, an analyst at North Square Blue Oak Ltd. in Beijing.

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pipeline that runs through Myanmar to Yunnan province, designed to carry 12 billion cubic meters annually. PetroChina’s parent company, China National Petroleum Corp., began to import gas from Myanmar in 2013, according to a
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on its website. Shipments totaled 2.86 million tons last year, customs data show, accounting for about 5 percent of the country’s total imports.

Companies including Total SA and
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are
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for resources offshore Myanmar. The country had about 18.7 trillion cubic feet of proven gas reserves as of 2015, or about 3.4 percent of the Asia-Pacific total, according to BP Plc data.

— With assistance by Ting Shi, and Jing Yang

Before it's here, it's on the Bloomberg Terminal.
This pipeline is almost 5% of import oil, that is not a drop in the bucket. In the oil industry, trying to squeeze out 10000 bbl/d is already going to cost you tens of millions. So that 400000 number is significant. Also, add on the pipelines from central Asia and Russia, you got a pretty good percentage of land based pipelines.
 

Hendrik_2000

Lieutenant General
This pipeline is almost 5% of import oil, that is not a drop in the bucket. In the oil industry, trying to squeeze out 10000 bbl/d is already going to cost you tens of millions. So that 400000 number is significant. Also, add on the pipelines from central Asia and Russia, you got a pretty good percentage of land based pipelines.

Assuming 7 barrel per metric ton of oil according to this news China Kazakhstan oil pipeline transport 100,000,000 ton/year, 100,000,000X7/(356)=2000,000 barrel per day? that is a lot I don't believe it
Yup this guy make mistake it should be 10 million ton
I understand the 3rd line of expansion has been finished increasing it to 400,000 barrel perday
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Kazakhstan-China pipeline pumps 100 millionth ton of oil
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Atasu-Alashankou-pipeline-300x154.png


*Atasu-Alashankou pipeline.

01 April 2017, Sweetcrude, London — Atasu-Alashankou pipeline running from Kazakhstan to China pumped the 100 millionth ton of oil on March 31, Kazakh National company KazTransOil said in a message.

The pipeline is owned by Kazakhstan-China Pipeline LLP, a jointly-controlled company of KazTransOil and Chinese CNODC.

The first startup complex of Atasu-Alashankou pipeline was commissioned in 2006; construction was fully completed in 2008. At the first stage of operation the pipeline has a capacity of 10 million tons per year.

In 2013 two pumping stations – No8 and No10 were launched on the pipeline which allowed increasing its capacity to 20 million tons per year.

Since 2014 Atasu-Alashankou pumps Russian oil along with Kazakh oil. The agreement between KazTransOil and Rosneft envisaged pumping of 7 million tons of Russian oil per year through this pipeline. In late Dec. 2016 the companies agreed to increase Russian oil pumping to 10 million tons per year since 2017.
 
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PiSigma

"the engineer"
Assuming 7 barrel per metric ton of oil according to this news China Kazakhstan oil pipeline transport 100,000,000 ton/year, 100,000,000X7/(356)=200,000 barrel per day

Kazakhstan-China pipeline pumps 100 millionth ton of oil
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Atasu-Alashankou-pipeline-300x154.png


*Atasu-Alashankou pipeline.

01 April 2017, Sweetcrude, London — Atasu-Alashankou pipeline running from Kazakhstan to China pumped the 100 millionth ton of oil on March 31, Kazakh National company KazTransOil said in a message.

The pipeline is owned by Kazakhstan-China Pipeline LLP, a jointly-controlled company of KazTransOil and Chinese CNODC.

The first startup complex of Atasu-Alashankou pipeline was commissioned in 2006; construction was fully completed in 2008. At the first stage of operation the pipeline has a capacity of 10 million tons per year.

In 2013 two pumping stations – No8 and No10 were launched on the pipeline which allowed increasing its capacity to 20 million tons per year.

Since 2014 Atasu-Alashankou pumps Russian oil along with Kazakh oil. The agreement between KazTransOil and Rosneft envisaged pumping of 7 million tons of Russian oil per year through this pipeline. In late Dec. 2016 the companies agreed to increase Russian oil pumping to 10 million tons per year since 2017.
I can never figure out why China use tonnes for oil flow. Barrels makes way more sense. The density of oil will fluctuate even from the same field over its lifetime. The 7 barrels is for cubic Meyer, not tonne, unless your oil is the same density as water. But there are light crudes that are much lighter than water and heavy crude that is much heavier. Volumetric measurements makes way more sense than mass.
 

timepass

Brigadier
It is good that China is helping Pakistan to grow. But there is really very few benefit for China aside from preventing Pakistan from becoming fail state and therefore become the hot den of radicalism Of course the geo strategic benefit of side lining the Indian is added plus. The only benefit I can see is providing land locked Xinjiang with access to sea.

Hold your horses man & avoid giving sweeping statements.... till you are very much aware of ground realities...

Secondly that's the difference between China & other powers, who is basically working on grounds for the betterment of humanity while other powers just focused for their vested interests. Believe that's the basic notion of your statement like majority of world powers couldn't digest the CPEC & Sino - PAK friendship.
 

Hendrik_2000

Lieutenant General
Hold your horses man & avoid giving sweeping statements.... till you are very much aware of ground realities...

Secondly that's the difference between China & other powers, who is basically working on grounds for the betterment of humanity while other powers just focused for their vested interests. Believe that's the basic notion of your statement like majority of world powers couldn't digest the CPEC & Sino - PAK friendship.

There is no charity in this world Most of those project are funded by the bank(SOE or private) So they expect return in the form of interest or stake in the company. The PRC my nudge those bank to lend it to Pakistan with implicit guarantee. It is NOT Manaa form heaven

I think they are going overboard Not sure if those loan will be realized MOU doesn't mean disbursement of the loan
 
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