China-Myanmar Crude Oil Pipeline Strengthens Energy Security

Published on Author leeh17

제목 없는 그림1

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.



One Response to China-Myanmar Crude Oil Pipeline Strengthens Energy Security

  1. One pipeline can surely carry only a modest share of petroleum imports, but it is a more direct route for the interior of the country: this is good news for Kunming. Except as Myanmar charges a high rent, once built a pipeline generates few jobs, though the port may do a bit better.

    The Straits of Malacca are hard to police (though of late I’ve not read of piracy, certainly not for a large tanker). They’re also prime fishing, so an oil spill would be a larger disaster than otherwise. The safety factor is there, alongside the savings in transit time. That means less expense on fuel and other shipping costs, and also fewer ships so there’s a one-time saving in capital costs.