" We saw one of the most significant shifts in a long while for energy markets last week with a key pipeline opening that will radically change global flows of crude oil.
The project in question is the China-Myanmar oil pipeline which Chinese state media said on Thursday has now opened for test runs.
The pipeline is one of the most ambitious constructions the global energy sector has seen. Running 771 kilometres from Myanmar’s western coastal port of Kyaukphyu, across the entire length of that country, and into the Chinese city of Kunming. The diagram below from Stratfor shows the route.
The line has been an ongoing project for years now. With construction having begun in 2010, and been completed in May 2014. A twin natural gas pipeline that’s also part of the development was put into operation last year.
The size of the pipeline is notable. But its location is even more significant when it comes to the worldwide movement of oil.
The pipe provides the first overland access between China and shipments of crude sailing from the Middle East.
Up until now, Middle East tankers were forced to sail through the Straits of Malacca between Indonesia and Malaysia in order to reach Asian buyers. A route that’s noted to be treacherous, and which adds almost two weeks to the journey for an average Saudi Arabia-to-Shanghai shipment.
Such crude can now be offloaded on the Myanmar coast and sent straight into the heart of China. Giving buyers here a major cost saving–and giving China a huge leg up over other Asian consumers like Japan and Korea when it comes to securing supply.The capacity on the new line is significant–able to move 160 million barrels yearly, or about 440,000 barrels per day. Equivalent to just under 0.5% of total global oil demand.
That might just be enough to change prices for some crude blends. Watch for increasing competition amongst other Asian oil buyers, and increased shipments coming into this region from suppliers outside the Middle East.
They don't have to come through the Maccala straits a known choking point, and this will reduce its dependence on the South China Sea shortening the trip by a couple of weeks, i understand plus hopefully no more problems with the "Freedom of Navigation" crowd. http://thediplomat.com/2013/08/can-india-blockade-china/
Unfortunately, "nice little pipeline youse got here" ...
" Xinhua, August 27, 2017
Terrorist attacks have escalated in Myanmar's northern Rakhine state with six more civilians being killed in a new wave of ambushes by extreme terrorists on Saturday, said the State Counselor's Office on Sunday.
The civilians killed included several village heads and a child in Maungtaw township, suspected of government informants.
The terrorist group also ambushed a police convoy with improvised explosive devices, leaving one terrorist dead.
In another incident in the day, 150 terrorists, armed with machetes, tried to attack security forces but were repelled.
Police at Kyunpauk Pyusu outpost also dispersed about 300 terrorists approaching the outpost.
The terrorists burnt down a village in Myinlut, destroying 88 houses, more than 100 shops, two mosques, eight religious schools, nine vehicles and four motorcycles and then fled to Mayu mountain.
Also about 500 other extremist terrorists attempted to enter a village in Yethedaung township but were fought back.
Security forces have been reinforced to fight the terrorists. ... "
