A new oil pipeline with a total length of 770 kilometers, which runs through Myanmar and leads to the southwest of China, will be opened soon, which also marks the emergence of a new oil trade route.
Due to the "delicate" relationship between Myanmar and China, this oil pipeline with a total value of $6,543.8+$50 million has been idle for two years. However, recent news from Myanmar officials and industry shows that China and Myanmar have reached a new agreement on opening this oil pipeline.
According to the agreement, PetroChina is allowed to transport 260,000 barrels of imported crude oil to Yunnan Province of China through the Bay of Bengal and Myanmar pipelines every day.
According to the report, the new oil pipeline is an important infrastructure construction in China's "Belt and Road Initiative". In addition to the original maritime transportation route through the Straits of Malacca, it provides another pipeline for directly transporting oil from the Middle East to China.
A person in charge of Myanmar Oil and Gas Company said that this agreement has yet to be finally signed by Myanmar Ministry of Power and Energy.
A person familiar with this project in the Myanmar industry said that the issues related to transportation tariffs and oil taxes and fees in Myanmar have been resolved through discussion, and the two sides have not yet reached an agreement on port fees.
The pipeline has been started, which has solved the problem of fuel shortage in southwest China to some extent.
People familiar with the matter said that the two sides are trying to negotiate the final terms and sign the contract. He said: "I'm not sure when the final terms will be completed, but it may be reached in a few days or early April."
According to the report, the daily oil transportation capacity of this pipeline is 400,000 barrels, which is equivalent to 5% of China's total daily oil imports. After PetroChina and Myanmar reach an agreement on oil transportation, the refinery in Yunnan can start operation.
PetroChina plans to start trial production in Yunnan in June this year. This project is also to solve the fuel shortage problem in the southwest of China. An official said that before this, in order to provide fuel for the new refinery's one-month reserve, PetroChina is expected to buy another 7 million barrels of crude oil.
According to the report, although the agreement has not yet been finally signed, the oil pipeline in Myanmar has started. According to the shipping data of Reuters, the oil tanker United Power left the coast of the South Indian Ocean with 6,543,800 barrels of crude oil, and is expected to arrive in Kyaukphyu, Myanmar this week.
Current situation of domestic oil price: the supply of fuel is in short supply and the price is rising.
The rise in oil prices has always been a hot topic in street chat. For ordinary car owners, this may just be a family budget involving the increase of monthly car fares. However, for China automobile industry and automobile enterprises, an extremely severe survival test is coming. According to the budget of relevant authoritative departments, the domestic fuel price is likely to rise further in the near future, and the market will only rise in the next few years due to the increasing shortage of overseas crude oil resources and rising oil prices. In addition, under the influence of fuel tax, integration with overseas countries and other factors, the range and frequency of oil price increase in China will be higher than that in overseas countries.