Crude Oil Pipeline connecting China(Kunming) and Myanmar(Kyaukpyu) officially opened on January 28th. Now, this new pipeline allows China to save time up to 30 percent on oil deliveries and ensures high level of the safety of oil imports.
China has transported about 80 percent of oil imports from the Middle East depending on the Strait of Malacca which has been threatening the safety of crude imports. The route bypassing the Strait of Malacca is under the influence of the American Seventh Fleet. China has had territorial disputes with Southeast Asia countries near the Strait of Malacca such as Malaysia, Vietnam and Philippines, which led China to push forward a Sino-Burma Pipe Project for 3 years.
“The new pipeline will serve as an alternative route for China’s crude oil imports from the Middle East,” said Li Li, research and strategy director at ICIS-C1 Energy, a consultancy in Shanghai. Now, about 8 percent of annual oil imports is going to be supplied through this pipe.
As the pipeline saves time and ensures stable energy supply to China, it accordingly will bring economic efficiency and benefits to both China and Myanmar.