China to build mega oil pipeline from Gwadar to Kashgar

[VCheng]

Even CPEC won't do the kind of miracles that you are expecting.

If it is not CPEC. it will be something else, because there is always a miracle to be sold to the people to keep them believing in in a better future yet to arrive, to lessen the pain of their abysmal present. And it works.

 

[dadeechi]

This news makes perfect sense from China's perspective

China wanted to diversify its logistics away from the strait of Malacca which is prone to blockade using the following alternative routes

1) Gwadar port in Pakistan

2) Kyaukphyu port in Myanmar

3) Kra canal through Thailand

Also, China has huge amount of money lying around and these projects give huge ROI. Not only is China using its unproductive money in a productive way by lending it at great interest rates but also using that money for investments that benefit themselves than the borrowing party. This is like hitting two birds in one shot.

Since this money is being lent, the risk of if these projects would be financially viable or not is completely transferred to the borrowing party.

Now the borrowing parties need to ensure that these projects are financially viable and deliver the expected returns for them. This also means that all these three parties would now be competing against each other to encourage China to use their transit routes instead of the other alternatives. Thus, China would be building immense leverage in all these countries. If China pulls the plug on using the transit route, the borrowing country would have tough time making it viable but yet it would have to pay back the loans along with interest to China.

Full credit to the Chinese planners and their vision.

 

[dray]

This news makes perfect sense from China's perspective

China wanted to diversify its logistics away from the strait of Malacca which is prone to blockade using the following alternative routes

1) Gwadar port in Pakistan

2) Kyaukphyu port in Myanmar

3) Kra canal through Thailand

Also, China has huge amount of money lying around and these projects give huge ROI. Not only is China using its unproductive money in a productive way by lending it at great interest rates but also using that money for investments that benefit themselves than the borrowing party. This is like hitting two birds in one shot.

Since this money is being lent, the risk of if these projects would be financially viable or not is completely transferred to the borrowing party.

Now the borrowing parties need to ensure that these projects are financially viable and deliver the expected returns for them. This also means that all these three parties would now be competing against each other to encourage China to use their transit routes instead of the other alternatives. Thus, China would be building immense leverage in all these countries. If China pulls the plug on using the transit route, the borrowing country would have tough time making it viable but yet it would have to pay back the loans along with interest to China.

Full credit to the Chinese planners and their vision.

That's a very good point.

Any idea about the rates of interest China is charging to these three countries?

 

[maximuswarrior]

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

What is up with the calculations and thinking? I think India should also stop all pipeline projects. There will be a lot of costs involved.

 

[risingsinga]

This is good news for both countries and I see and India

 

[PaklovesTurkiye]

This is good news for both countries and I see and India

LOL....

 

[OrionHunter]

The word 'mega' this and 'mega' that is making me sick! Everything seems to be going 'mega' in Pakistan! Mega oil city Gwadar, mega oil pipeline, mega coal power plants, mega dams, mega motorways, mega industrial hubs, mega.......oh ok, you get the point!

 

[Hutchroy]

I'm no engineer. As an example , the Alyeska pipeline passes through extremely cold areas. They've managed to sort the coagulation problem via heating at the pumps and maintaining a minimum flow level - i'm guessing that's how they'll do it.

I thank you for this information and would suppose that the Alaska Pipeline must be covered-coated with Insulating Material. However the Khunjareb Pass is at about 15,000 Feet and pumping to such heights will require very very heavy duty pumps. Do you think that the Chinese might transport the Oil to Kashgar by Railway in suitable Insulated Wagons? Thanks

 

[DESERT FIGHTER]

My three expectations were 1)Industrial parks 2)Jobs 3)Transit Revenue



1)
China to set up massive industrial park at Gwadar - The Nation
Quoted from the article ' a massive Industrial Park at Gwadar, which will house an oil city and petroleum refining zone'


2)Jobs- Most of the highways, bridges and pipelines in CPEC are being built by FWO.( PAK Army's Infrastructure Arm). Except for those in Kashmir where the terrain is unforgiving and
so the army does not have the expertise to build there without Chinese help.
source:
http://tribune.com.pk/story/1039480/nawaz-inaugurates-gwadar-hoshab-m-8-portion-of-cpec/

Quoted from the article 'He lauded the FWO team for completing the road despite numerous challenges,'

3)Transit revenue- This one is quite obvious.

The FWO built the KKH .. Called the 8th wonder of the world ... They might not have advanced heavy machiney but they do have the expertise and experience.. The machinery can be leased from China.. All such mega projects are JVs where 50% of the work is done in partnership with a Pakistani company be it FWO or its subcontractors or other local construction companies like Habib etc.

The word 'mega' this and 'mega' that is making me sick! Everything seems to be going 'mega' in Pakistan! Mega oil city Gwadar, mega oil pipeline, mega coal power plants, mega dams, mega motorways, mega industrial hubs, mega.......oh ok, you get the point!

Yeah causing mega butt hurt.

I thank you for this information and would suppose that the Alaska Pipeline must be covered-coated with Insulating Material. However the Khunjareb Pass is at about 15,000 Feet and pumping to such heights will require very very heavy duty pumps. Do you think that the Chinese might transport the Oil to Kashgar by Railway in suitable Insulated Wagons? Thanks

Railways and fiber optics and expansion of KKH is also happening in the same area...

If it is not CPEC. it will be something else, because there is always a miracle to be sold to the people to keep them believing in in a better future yet to arrive, to lessen the pain of their abysmal present. And it works.

Nothing gets done with pessimism either .. Maybe in your case it works.. ?

 

[Deidara]

Funny how the Moogly hiding behind JungleBook had to make a fake account in hassle to come tell us about technical issues involved.

Good going my child. Think freely. Let the imagination run wild.

 

[Tripoli]

The word 'mega' this and 'mega' that is making me sick! Everything seems to be going 'mega' in Pakistan! Mega oil city Gwadar, mega oil pipeline, mega coal power plants, mega dams, mega motorways, mega industrial hubs, mega.......oh ok, you get the point!

MODI'S MAKE IN INDIA SCHEME : BURNOL THE BURNS CREAM

 

[cranwerkhan]

Everything related to the CPEC is being termed 'mega'! Mega Oil City (Gwadar), mega oil pipeline, mega industrial complex, mega energy projects, mega roadway projects, mega metros, mega Karot Hydropower Project, mega coal power project, mega this and mega that!

Is it megalomania?

you forget megabuthurt

 

[Manidabest]

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

so wat do u think we should ??? dont let china use this route???
i think u shudnt worry about Pakistan ... we know what we have to do ... thank you

 

[-blitzkrieg-]

Good going my child. Think freely. Let the imagination run wild.

Your comment shows your irritation..Served my purpose.

 

[risingsinga]

Since this money is being lent, the risk of if these projects would be financially viable or not is completely transferred to the borrowing party.

Now the borrowing parties need to ensure that these projects are financially viable and deliver the expected returns for them. This also means that all these three parties would now be competing against each other to encourage China to use their transit routes instead of the other alternatives. Thus, China would be building immense leverage in all these countries. If China pulls the plug on using the transit route, the borrowing country would have tough time making it viable but yet it would have to pay back the loans along with interest to China.

Full credit to the Chinese planners and their vision.

Sir I can imagine your anxiety and depression caused by this news. It is very easy to type on keyboard but people normally like to run and hide behind something when they are asked for a reference. Since official stance from both China and Pakistan has been that this is an investment within the larger framework of CPEC that simply means your typical Indian rant is nothing but your public display of desperation and embarrassment. If you have some credible references to support your arguments, please do share until then we should stick with the official version of the story and you can take some anti-depression tablet from the nearby pharmacy.

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.

My friend why do you want to burn our Indian friends with anger and jealousy