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Domestic Pipelines In China
- By Oil and Gas Author
- Published 08/30/2006
- Crude Oil Petroleum , Natural Gas Petroleum , Exploration and Discoveries , Liquefied Natural Gas LNG , Environment and Pollution , Oil and Natural Gas Prices , Offshore Drilling , Petroleum Pipeline
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View all articles by Oil and Gas AuthorIn May 2006, China began receiving crude Oil imports from its first transnational oil Pipeline. The new pipeline spans 620 miles, connecting Atasu in northern Kazakhstan with Alashankou in the Xinjiang Uygur Autonomous Region. The pipeline was developed by the Sino-Kazakh Pipeline Company, a 50:50 joint venture between CNPC and Kazakhstans KazTransOil. The project has an initial capacity to transport 200,000 bbl/d of Crude Oil, with plans to double the capacity by 2010. Half of the imported oil comes from Kazakhstan and half from Russia. Russias Far East may also one day be a source for Chinese crude oil imports. Russian state-owned oil giant Transneft began construction in April 2006 on a pipeline that will reportedly span 2,500 miles from the Russian city of Taishet to the Pacific Coast. According to Transneft officials, the first 1500-mile stretch is expected to be completed in 2008 and reach Skovorodino, which is only 30 miles from the Chinese border. The second stretch of the Eastern Siberia-Pacific Ocean (ESPO) pipeline will presumably reach the PacificCoaston Russian soil, although no final decision on end-points has been made. Likely candidates are Perevoznaya or Nakhodka, and Russian officials say they favor a route that would allow oil shipments to both China and Japan. Once completed, the project is expected to carry 1.6 million bbl/d of crude oil. News reports suggest that the first phase of the ESPO to Skovorodino will include a spur to Daqing, carrying as much as 600,000 bbl/d to one of Chinas major downstream oil centers. Russias Eastern Siberia region has 7 billion barrels of proved oil reserves, with one exploration company in the area reporting that it contains 75 billion barrels of potential reserves. In April 2006, Chinas National Development and Reform Commission (NDRC) reportedly approved a feasibility study to construct a new crude oil pipeline from Myanmar to China. As Myanmar does not produce significant amounts of crude oil, the pipeline is envisioned as an alternative transport route for crude from the Middle East and Africa that would bypass the choke point of the Strait of Malacca. Contradictory news reports have suggested that Chinese planners do not consider the Myanmar-China route economically attractive and so far have no plans to build such a pipeline.
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