• 5 mins Iraq Asks BP To Redevelop Kirkuk Oil Fields
  • 18 hours Oil Prices Rise After U.S. API Reports Strong Crude Inventory Draw
  • 18 hours Oil Gains Spur Growth In Canada’s Oil Cities
  • 19 hours China To Take 5% Of Rosneft’s Output In New Deal
  • 20 hours UAE Oil Giant Seeks Partnership For Possible IPO
  • 20 hours Planting Trees Could Cut Emissions As Much As Quitting Oil
  • 21 hours VW Fails To Secure Critical Commodity For EVs
  • 22 hours Enbridge Pipeline Expansion Finally Approved
  • 23 hours Iraqi Forces Seize Control Of North Oil Co Fields In Kirkuk
  • 24 hours OPEC Oil Deal Compliance Falls To 86%
  • 2 days U.S. Oil Production To Increase in November As Rig Count Falls
  • 2 days Gazprom Neft Unhappy With OPEC-Russia Production Cut Deal
  • 2 days Disputed Venezuelan Vote Could Lead To More Sanctions, Clashes
  • 2 days EU Urges U.S. Congress To Protect Iran Nuclear Deal
  • 2 days Oil Rig Explosion In Louisiana Leaves 7 Injured, 1 Still Missing
  • 2 days Aramco Says No Plans To Shelve IPO
  • 4 days Trump Passes Iran Nuclear Deal Back to Congress
  • 5 days Texas Shutters More Coal-Fired Plants
  • 5 days Oil Trading Firm Expects Unprecedented U.S. Crude Exports
  • 5 days UK’s FCA Met With Aramco Prior To Proposing Listing Rule Change
  • 5 days Chevron Quits Australian Deepwater Oil Exploration
  • 5 days Europe Braces For End Of Iran Nuclear Deal
  • 5 days Renewable Energy Startup Powering Native American Protest Camp
  • 6 days Husky Energy Set To Restart Pipeline
  • 6 days Russia, Morocco Sign String Of Energy And Military Deals
  • 6 days Norway Looks To Cut Some Of Its Generous Tax Breaks For EVs
  • 6 days China Set To Continue Crude Oil Buying Spree, IEA Says
  • 6 days India Needs Help To Boost Oil Production
  • 6 days Shell Buys One Of Europe’s Largest EV Charging Networks
  • 6 days Oil Throwback: BP Is Bringing Back The Amoco Brand
  • 6 days Libyan Oil Output Covers 25% Of 2017 Budget Needs
  • 6 days District Judge Rules Dakota Access Can Continue Operating
  • 7 days Surprise Oil Inventory Build Shocks Markets
  • 7 days France’s Biggest Listed Bank To Stop Funding Shale, Oil Sands Projects
  • 7 days Syria’s Kurds Aim To Control Oil-Rich Areas
  • 7 days Chinese Teapots Create $5B JV To Compete With State Firms
  • 7 days Oil M&A Deals Set To Rise
  • 7 days South Sudan Tightens Oil Industry Security
  • 8 days Over 1 Million Bpd Remain Offline In Gulf Of Mexico
  • 8 days Turkmenistan To Spend $93-Billion On Oil And Gas Sector
Alt Text

Draw In Crude Inventories Lifts Oil Prices

Oil prices reversed course on…

Alt Text

Is The Bakken Profitable At $50 Oil?

The Bakken remains the second…

Alt Text

Who Is Winning The Market Share War In China?

The OPEC production cut deal…

Myanmar Oil Pipeline Could Bring Cheaper Crude To China

Myanmar pipeline

It’s been an on-again, off-again battle — but one of the world’s largest and most critical new energy infrastructure projects got off the ground this week.

That’s a 770-kilometer crude oil pipeline in the Southeast Asian nation of Myanmar. Owned and built by China — and giving that country unprecedented access to crude flows in the Indian Ocean.

The first-ever tanker of oil began loading to the new pipeline on Monday, according to reports from Chinese media. With this initial slug of 1 million barrels to begin transiting across Myanmar, bound for refineries in Kunming, southern China. You can see the route in the chart below.

(Click to enlarge)

China’s new crude pipeline (green line) runs 770 kilometers from the Myanmar port of Kyaukphyu all the way to Kunming

The inaugural oil shipment here comes after years of delays for this mega-project. With China having previously announced commissioning of the oil pipeline in early 2015 — a year after a twin natural gas pipeline (red line in the map above) began operating.

But oil shipments failed to launch at that time. Due to political wrangling between Myanmar and China over commercial terms for oil exports (all of the pipeline’s crude goes to China, with Myanmar simply acting as a transit route).

That caused the pipe to sit empty for two years. Until an agreement was finally hammered out this past Monday between the Chinese and Myanmar governments — opening the door for crude shipments to finally begin.

If the pipeline indeed ramps up to full capacity, this will be one of the biggest developments of the decade for global crude flows. With China now able to receive oil from key producing centers like the Middle East and Africa directly off the Indian Ocean — eliminating days of sailing through the treacherous Strait of Malacca between Indonesia and Malaysia.

That lowers the landed oil price for Chinese buyers. And should incentivize more purchases from Indian Ocean oil nations. It may also lead China’s E&Ps to a greater focus on projects in this region — such as East Africa, Iran and India. Watch for news on the pipeline’s rise to full capacity, and for knock-on shifts in Chinese energy investment.

Here’s to opening the back door.

By Dave Forest

More Top Reads From Oilprice.com:




Back to homepage


Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News