China to build mega oil pipeline from Gwadar to Kashgar

[Major Sam]

ISLAMABAD - Work on Gwadar-Kashgar oil pipeline that would carry one million barrel per day (1MMBD) Middle Eastern oil to China will start in 2017, it is learnt reliably.

Another milestone in the Pak-China relation is nearing as China is getting ready to shift around 17 percent of its oil import to Gwadar-Kashgar oil pipeline, official sources told The Nation here. The five-year project is likely to start in 2017 and will be completed by 2021, the source added.

It is the part of the Chinese policy of revival of silk route as the pipeline will be built along this ancient trade route. The project will be funded by the Chinese government and Frontier Work Organization (FWO) will execute the project for them, the source maintained.

Silk route was rebuilt by the FWO and Chinese want them to utilise their previous experience in the laying of oil pipeline, the source added. The FWO has already given its presentation on the project to the ministry concerned and is likely to embark on the project in 2017. The final length, route and cost of the project are yet to be finalised.

Gwadar is near the Persian Gulf and close to the Strait of Hormuz, which holds two-thirds of the world oil reserves and from where an estimated 17 billion barrels of crude oil passes daily. The port opens up a 3,000km-long trade corridor that will connect Gwadar to Kashgar, in China’s western Xinjiang region, via roads, railways and pipelines to transport oil and gas.

The Chinese Overseas Port Holding Company (COPHC) took over the Gwadar Port in 2013 for 40 years. Beijing and Islamabad signed $46 billion China Pakistan Economic Corridor (CPEC) which includes, energy projects, building of new roads, railway lines and a network of oil pipelines to connect Kashgar to Gwadar.

The new 3,000km (1,500 mile) network of highways, rails, and oil pipelines will give China quicker access to Europe and the Middle East. Currently, china is importing around 6 million barrel oil per day from different countries of the world via sea route, and the Gwadar-Kashgar pipeline is likely to take around 17 percent of the share of total Chinese import.

The existing sea route being used by China passes through the risky South China Sea, Pacific Rim, the Strait of Malacca and Sri Lanka, and Chinese ships have to cruise about 10,000 kilometres for reaching its final destination. The Gwadar Port will reduce the sea distance to 2,500 kilometres and land distance for Kashgar to 2,800 kilometres because Kashgar is 4,500 km from the main Chinese port of Shanghai. The CPEC related projects will not only save China time but also millions of dollars.

The overland route, via Pakistan, eliminates the need to ship crude through Malacca Strait. Chinese will establish a massive Industrial Park at Gwadar, which will house an oil city and petroleum refining zone beside dozens of other technical and logistical installations. This will help China meet its energy needs.

http://nation.com.pk/national/13-Jun-2016/china-to-build-mega-oil-pipeline-from-gwadar-to-kashgar

 

[posedion]

As we know the Global Oil transit, transport cost is estimated to be around 8 dollar /barrel in the existing route

lets say china by building this pipeline saves 50 % I would doubt that

That brings it to 4 dollars if a one dollar/ barrel is spent on pipeline maintenance so the nett saving comes around 3 dollar per barrel, china would looking at-least 30% percent saving in costs for having invested in huge infrastructure .....

So what remains is .6 dollar /barrel, really what will Pakistan get other than may be employment opportunities and of course some free infrastructure this would be the case for all the chinese trade that happens through pakistan other than some employment it does not mean anything more

 

[Major Sam]

As we know the Global Oil transit, transport cost is estimated to be around 8 dollar /barrel in the existing route

lets say china by building this pipeline saves 50 % I would doubt that

That brings it to 4 dollars if a one dollar/ barrel is spent on pipeline maintenance so the nett saving comes around 3 dollar per barrel, china would looking at-least 30% percent saving in costs for having invested in huge infrastructure .....

So what remains is .6 dollar /barrel, really what will Pakistan get other than may be employment opportunities and of course some free infrastructure this would be the case for all the chinese trade that happens through pakistan other than some employment it does not mean anything more

seems you are thinking alot. you should rest now.

 

[Spy Master]

As we know the Global Oil transit, transport cost is estimated to be around 8 dollar /barrel in the existing route

lets say china by building this pipeline saves 50 % I would doubt that

That brings it to 4 dollars if a one dollar/ barrel is spent on pipeline maintenance so the nett saving comes around 3 dollar per barrel, china would looking at-least 30% percent saving in costs for having invested in huge infrastructure .....

So what remains is .6 dollar /barrel, really what will Pakistan get other than may be employment opportunities and of course some free infrastructure this would be the case for all the chinese trade that happens through pakistan other than some employment it does not mean anything more

Lol Why do you even care...China is investing, So You are more expert than Chinese economists?

 

[Tripoli]

It will bring investment into Pakistan. It will create jobs and industrial parks.
Not to mention the transit revenue generated by this.

In the end it will be up to Pakistani leaders to keep the interests of the country at the forefront
and make sure this project fully benefits Pakistan.

As we know the Global Oil transit, transport cost is estimated to be around 8 dollar /barrel in the existing route

lets say china by building this pipeline saves 50 % I would doubt that

That brings it to 4 dollars if a one dollar/ barrel is spent on pipeline maintenance so the nett saving comes around 3 dollar per barrel, china would looking at-least 30% percent saving in costs for having invested in huge infrastructure .....

So what remains is .6 dollar /barrel, really what will Pakistan get other than may be employment opportunities and of course some free infrastructure this would be the case for all the chinese trade that happens through pakistan other than some employment it does not mean anything more

 

[khanmubashir]

As we know the Global Oil transit, transport cost is estimated to be around 8 dollar /barrel in the existing route

lets say china by building this pipeline saves 50 % I would doubt that

That brings it to 4 dollars if a one dollar/ barrel is spent on pipeline maintenance so the nett saving comes around 3 dollar per barrel, china would looking at-least 30% percent saving in costs for having invested in huge infrastructure .....

So what remains is .6 dollar /barrel, really what will Pakistan get other than may be employment opportunities and of course some free infrastructure this would be the case for all the chinese trade that happens through pakistan other than some employment it does not mean anything more

stop being jealous liar

 

[Oracle]

As we know the Global Oil transit, transport cost is estimated to be around 8 dollar /barrel in the existing route

lets say china by building this pipeline saves 50 % I would doubt that

That brings it to 4 dollars if a one dollar/ barrel is spent on pipeline maintenance so the nett saving comes around 3 dollar per barrel, china would looking at-least 30% percent saving in costs for having invested in huge infrastructure .....

So what remains is .6 dollar /barrel, really what will Pakistan get other than may be employment opportunities and of course some free infrastructure this would be the case for all the chinese trade that happens through pakistan other than some employment it does not mean anything more

1.Quick route and oil will be there in days instead of weeks.
2. contineous supply.
3.if you are adding maintenance cost then then you forgot maintenance cost of sea oil tankers

 

[Tripoli]

The pipeline will improve China's energy security by bypassing some of the oil from the strait of Malacca and the Indian Andaman and Nicobar islands.

 

[posedion]

stop being jealous liar

Quote facts to disprove dont go calling names, by the way a Economically prosperous pakistan is in the best interest of the world Including India, Democratic institutions in pakistan will be strengthened once they can show economic progress

It will bring investment into Pakistan. It will create jobs and industrial parks.
Not to mention the transit revenue generated by this.

In the end it will be up to Pakistani leaders to keep the interests of the country at the forefront
and make sure this project fully benefits Pakistan.

My friend All I asked is How much does this help pakistan financially, for china it secures them a strategic energy route and by the way of things this much hyped project is nothing more than a strategic Insurance for China and of course its upto Pakistani leadership to use the leveraged infrastructure to further its goals of economic prosperity of Pakistan

Lol Why do you even care...China is investing, So You are more expert than Chinese economists?

Why China is investing is very clear Strategic Insurance and there are willing to spend on it, its upto pakistan to work for its economy....... the Infrastructure leverage is the only added bonus

seems you are thinking alot. you should rest now.

by commenting one liners you are more restful enjoy

 

[cirr]

Should also build a few refineries if there is no shortage in electricity supply.

If there is, also build a few power plants, conventional or nuclear.

Raw oil could be transported via pipeline while oil products can be shipped by railroads.

 

[Tripoli]

Quote facts to disprove dont go calling names, by the way a Economically prosperous pakistan is in the best interest of the world Including India, Democratic institutions in pakistan will be strengthened once they can show economic progress



My friend All I asked is How much does this help pakistan financially, for china it secures them a strategic energy route and by the way of things this much hyped project is nothing more than a strategic Insurance for China and of course its upto Pakistani leadership to use the leveraged infrastructure to further its goals of economic prosperity of Pakistan



Why China is investing is very clear Strategic Insurance and there are willing to spend on it, its upto pakistan to work for its economy....... the Infrastructure leverage is the only added bonus



by commenting one liners you are more restful enjoy

Transit revenue generated could be used to fund other infrastructure projects besides maintaining existing infrastructure.
So the financial benefit is the transit revenue.

 

[Kompromat]

China signs a deal with Iran for oil imports via Pakistan and India is neutralized. @Hyperion @Icarus @Oscar @Irfan Baloch

 

[Arsalan]

As we know the Global Oil transit, transport cost is estimated to be around 8 dollar /barrel in the existing route

lets say china by building this pipeline saves 50 % I would doubt that

That brings it to 4 dollars if a one dollar/ barrel is spent on pipeline maintenance so the nett saving comes around 3 dollar per barrel, china would looking at-least 30% percent saving in costs for having invested in huge infrastructure .....

So what remains is .6 dollar /barrel, really what will Pakistan get other than may be employment opportunities and of course some free infrastructure this would be the case for all the chinese trade that happens through pakistan other than some employment it does not mean anything more

OK, so why so concerned and worried?
Let it go dear!

China signs a deal with Iran for oil imports via Pakistan and India is neutralized. @Hyperion @Icarus @Oscar @Irfan Baloch

There were soms rumoors going around about that but have this been actually signed now?

If true it will be a huge boost to the whole CPEC project. I just now hope we do start working more aggressively on Western and ESPECIALLY the central route and connect Gwadar directly with the rest of the country. That will brings loads of investment in whole Baluchistan (desperately required), pass through DGK and the tribal belt (bring development accompanied by peace and stability) and shorten the travel distance across Pakistan and provide with a strategic main route connecting the whole country.

I will be happy to learn more about this, what it been actually signed now? Great news!!

 

[Kambojaric]

Source? If true then this is a great development.

He's mentioning a hypothetical scenario, but a realistic one nonetheless.

 

[Tripoli]

OK, so why so concerned and worried?
Let it go dear!

Indians are more concerned about this than Pakistanis themselves.