• 5 minutes Mike Shellman's musings on "Cartoon of the Week"
  • 11 minutes Permian already crested the productivity bell curve - downward now to Tier 2 geological locations
  • 17 minutes WTI @ 67.50, charts show $62.50 next
  • 14 hours The Discount Airline Model Is Coming for Europe’s Railways
  • 2 hours Pakistan: "Heart" Of Terrorism and Global Threat
  • 1 day Newspaper Editorials Across U.S. Rebuke Trump For Attacks On Press
  • 7 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 7 hours Venezuela set to raise gasoline prices to international levels.
  • 19 hours Saudi Fund Wants to Take Tesla Private?
  • 1 day Batteries Could Be a Small Dotcom-Style Bubble
  • 3 hours Renewable Energy Could "Effectively Be Free" by 2030
  • 1 day Starvation, horror in Venezuela
  • 20 hours Scottish Battery ‘Breakthrough’ Could Charge Electric Cars In Seconds
  • 43 mins Are Trump's steel tariffs working? Seems they are!
  • 1 day France Will Close All Coal Fired Power Stations By 2021
  • 1 day Don't Expect Too Much: Despite a Soaring Economy, America's Annual Pay Increase Isn't Budging
The Real Reason Behind The Next Oil Squeeze

The Real Reason Behind The Next Oil Squeeze

An oil supply squeeze may…

Keystone XL Delayed…Again

Keystone XL Delayed…Again

The Keystone XL saga has…

New China-Myanmar Oil Route Nears Launch

Pipeline

A pipeline that will carry crude oil from the coast of Myanmar to southwest China is nearing its start as the two countries settle their differences regarding the terms of the oil transport project. That’s according to government sources from Myanmar who spoke to Reuters. The pipeline could turn Myanmar’s Bay of Bengal coast into a new major oil route.

The 770-km, $1.5-billion pipeline was completed two years ago, but disagreements between Beijing and Naypyitaw delayed the start of deliveries. Now the countries seem amicable again, with China last week blocking a UN statement of concern with regard to a security operation conducted by Myanmar forces in the Rakhine province.

The operation is believed by most of the UN Security Council to be too violent and could include crimes against humanity and ethnic cleansing of a Muslim minority in the Asian nation. Myanmar’s government says the operation was a response to insurgence among the locals. China was backed in its rejection of the statement by Russia.

Since some of the clashes with the Muslim minority are taking place near the Myanmar-China border, the latter is careful not to let it spill over, vocally supporting peace talks. What’s more, these areas are abundant in natural resources, which is one more reason for Beijing to take a more active part in the peace process.

Related: Submerged Platforms To Revolutionize Offshore Oil & Gas

Myanmar is mostly rich in natural gas, which it exports to neighbors Thailand and China. It has some 50 million barrels in estimated oil reserves, but the crude that will feed the 260,000-bpd pipeline will come from overseas. Eventually, the pipeline should reach a capacity of 400,000 barrels per day, which is equal to 5 percent of China’s daily demand of imported oil.

The crude is to be supplied to PetroChina’s brand new Yunnan refinery, where test production is scheduled to start in June.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment

Leave a comment

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