China bypasses Malacca trap through Myuanmar pipelina

Discussion in 'China' started by IBSA, Feb 1, 2015.

  1. IBSA

    IBSA Regular Member

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    Updated: January 30, 2015 17:37 IST
    New China-Myanmar oil pipeline bypasses Malacca trap

    China has taken a firm step to beef up its energy security by inaugurating a pipeline that will bring crude oil from a deepwater port in Myanmar, along a transit route that will bypass the strategic Malacca Straits.

    The first tanker that will offload 300,000 tons of oil is expected to arrive on Friday at Maday Island – a deep water port developed by China in the Bay of Bengal. From there, oil, mostly brought from West Asia and Africa, will be pumped into a 2402-kilometre long pipeline that will stretch for 771 kilometres in Myanmar and another 1631 kilometres in China. A gas pipeline, next to the Maday Island terminal, already runs from Myanmar’s port of Kyaukpyu. China also finalised plans to establish a rail corridor from Kyaukpyu to its Yunnan province.

    The strategic oil pipeline will service China’s two major growth centres — Kunming and Chongqing, an industrial hub along the Yangtze River delta. Both cities are pivotal in the development of China’s Silk Road Economic Belt the 21st century Maritime Silk Road.

    Kunming is one of the starting points of the Maritime Silk Road, because it connects with three ASEAN countries — Myanmar, Vietnam and Laos. Landlocked Laos in turn becomes the gateway to ports in Thailand, and a wider transportation network covering Malaysia and Singapore as well.

    Chongqing is already a well-established junction along the Silk Road rail corridor, which begins at the coastal city of Yiwu, and heads to Duisburg - a major destination in Germany’s Ruhr industrial belt.

    Significantly, the new oil pipeline bypasses the Malacca Straits — a narrow channel that connects the Indian Ocean with the Pacific. The Chinese are concerned that their access to the Malacca Straits — the main channel of their trade and energy supplies — can become compromised on account of Beijing’s growing rivalry with the United States, and maritime disputes with neighbours in the South China Sea.

    China Daily quoted Li Li, strategy director at the energy consultancy firm, ICIS-C1, as saying that the “safety level of pipelines is much higher than for sea shipments, which will ensure a stable energy supply to China". "The economic benefits will grow as deliveries increase," she observed.

    As oil begins to flow, the Chinese are also building a refinery in Kunming that can process 10 million tons of crude annually.

    Part of the shipments received will also be delivered to Myanmar, said the country’s Vice-President U. Nyan Tun. China and Myanmar have jointly funded the project, including the construction of the Maday oil unloading terminal.

    Analysts say that apart from enhancing energy security, the construction of an oil and gas pipeline from Myanmar is driven by environmental considerations, as China works to limit carbon emissions resulting from its over-dependence on coal. Consequently, China has signed a long-term $400 billion gas deal with Russia, which will deliver energy supplies, which will be routed for consumption towards the Beijing-Tianjin-Hebei metropolitan area in the north, and the Yangtze River delta in the east. Russia and China have also signed an agreement for gas supplies along the western Altai route, which China hopes will also help reduce its carbon footprint.

    New China-Myanmar oil pipeline bypasses Malacca trap - The Hindu
     
    sgarg likes this.
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  3. Ray

    Ray The Chairman Defence Professionals Moderator

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    This is why the US wants US berthing facilities in the Bay of Bengal from India,
     
  4. Hari Sud

    Hari Sud Senior Member Senior Member

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    In a hostile tribal area in Myannmar, the pipeline is unlikely to be operational anytime sooner. This the Chinese learnt to their utter unpleasant surprise when they thought that Gwadar, next Persian Gulf will be a great trans shipment point. Hostile Baluchis will not let it happen.

    Same way the multiple tribal groups who have spent last fifty years growing opium and being hostile to Chinese will not let the Chinese design realized. No, sir the Malacca Strait is the only way to China from the Persian Gulf. To keep it going, they have to simmer down a bit, be nice to their neighbour, drop their territorial demands and just be a great commercial power than being a military power.
     
  5. amoy

    amoy Senior Member Senior Member

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    China-Myanmar crude oil pipeline put into operation

    [​IMG]
    Workers work at Made Island oil port, Myanmar, April 10, 2017. (Xinhua/Zhuang Beining)

    A 140,000-ton crude oil tanker "Suezmax" began offloading crude oil at Made Island oil port in Myanmar's western Rakhine state on Monday after the signing of a China-Myanmar crude oil pipeline transmission agreement in Beijing earlier in the day.

    Made Island oil port is the starting point of the China-Myanmar crude oil pipeline which is part of the China-Myanmar oil and gas pipeline project.

    The commencement of transmission of crude oil shows that the two countries have entered a new phase of energy cooperation.

    The crude oil pipeline starts in Made Island, extends as long as 771 kilometers, and ends in China's Yunnan Province. The pipeline passes through Myanmar's Rakhine state, Magway and Mandalay regions and Shan state.

    Built since June 2010, the oil pipeline has a designed transmission capacity of 22 million tons per year.

    Once the pipeline is put into operation, Myanmar can also be provided with 2 million tons of crude oil through it annually.

    [​IMG]


    [​IMG]
    Made Island oil port


    [​IMG]
    Yunnan's refinery to process crude oil through the Trans- Myanmar pipeline
     
    Last edited: Apr 11, 2017
  6. armyofhind

    armyofhind Regular Member

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    How is this bypassing Malacca though?

    if the objective was to take the oil tankers out of reach of India, then the pipeline will be operating from Myanmar ports anyway.. which open into Bay of Bengal.. which again can be blockaded by Indian Navy.

    So what is the point?
     
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  7. tharun

    tharun Patriot Senior Member

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    Can any one give the map of the pipeline.....................From Manipur,Nagaland,Mizoram you can cover Myanmar.
     
  8. amoy

    amoy Senior Member Senior Member

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    The oil/gas from the Myanmar port feeds less developed inland provinces of SW China directly, which would otherwise have to be supplied from the east coast.

    It'd boost SW China's development.


    [​IMG]


    China, Myanmar stress win-win cooperation to advance relations
    [​IMG]
    Chinese President Xi Jinping (L) holds a welcome ceremony for Myanmar President U Htin Kyaw before their talks in Beijing, capital of China, April 10, 2017. (Xinhua/Yao Dawei)

     
  9. vajradatta

    vajradatta Regular Member

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    China can feel free to move oil any way they want from the Middle East during peacetime but if there is a war, forget it.
     
  10. armyofhind

    armyofhind Regular Member

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    Your point is valid but the port itself doesn't produce oil right?

    It has to be brought there by oil tankers which will unload directly into the pipeline... from where the oil will be transported to the Chinese hinterland..

    But if the objective of this pipeline was to make the entire process safe from interdiction, there really isn't any use of this because the origin port of the pipeline can still be blockaded.
     
  11. Armand2REP

    Armand2REP CHINI EXPERT Veteran Member

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    If the US wants the Straits closed, they will be closed.
     
  12. amoy

    amoy Senior Member Senior Member

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    In a war scenario nothing can be "entirely" safe. These facilities are very useful in peace time - As a cliche goes, strive for the best and prepare for the worst.

    1) Development of the Southwest: Metropolis like Kunming, Chengdu and Chongqing etc. are all located in SW China in need of (greener) gas/oil. With this shortcut lots of investment like refinery and chemical plants make more sense to be deployed inland.

    2) Integration of Myanmar's economy with China's: Myanmar produces gas itself. Apart from revenues/employment/energy generated for Myanmar from the pipelines a railway from Kyaukpyu port to Kunming would be re-considered along the pipelines.

    Even should an India-China war break out hypothetically, India wouldn't be stupid enough to target port/pipeline facilities in Myanmar, which is most likely a neutral 3rd-party in that case. Nor would India blockade tankers/VLCCs etc. which fly flags of convenience, unless India wants to make everyone an enemy, and escalate to an "unlimited" warfare.

    Basically IMO the Trans-Myanmar pipelines are just part of efforts to diversify the supplies, instead of addressing the Malacca dilemma. In contrast pipelines linking Central Asia / Russia to China are free from India's interdiction indeed.
     
    Last edited: Apr 11, 2017
  13. vajradatta

    vajradatta Regular Member

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    Why would India attack Myanmar ports in a war scenario? If the intent was to stop oil flowing into China from the Middle East, the routes would be blocked. ie. no ships would reach Myanmar or the Malacca Straits. Even CPEC would be closed overland. The point being made here is how does the pipeline through Myanmar relieve the "Malacca dilemma". The Chinese dilemma is India's ability to stop oil flowing into China from the Middle East, period, and Malacca is but one of the choke points.
     

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