Posted on 10/26/2013 8:35:46 AM PDT by DeaconBenjamin
One of the most critical changes in global energy flows happened this week.
China inaugurated a 2,500 kilometre pipe to carry natural gas and oil from the Indian Ocean across Myanmar in southeast Asia and into southwest Yunnan province.
The gas portion of the line became fully operational this week. The line is expected to carry over 1 billion cubic feet of gas per day into China. The twin oil line is expected to follow.
This massive development has several key implications for the global energy balance.
Myanmar's significant offshore natural gas reserves (and growing production) now have a "go-to" market.
This could mean less natgas supply for other consumers in the region. Possibly the reason why fellow Myanmar gas user Thailand said this week that it wants to make coal its official fuel of choice going forward, moving away from natural gas.
China is committed to diversifying its natural gas import base. As one of the highest payers for LNG imports on the planet, China needs all the gas it can get. And "back door" supply options like the Burmese pipeline are a focus.
Finally, the oil segment of the pipeline has the potential to re-make the crude shipping business. The line is expected to deliver over 22 million barrels yearly, or about 440,000 barrels per day into China. Most of this will be tanked oil, offloaded at Myanmar for transit through the pipe.
Major crude shippers like the Middle East will now have a much shorter journey to get supply to China. They will also be able to avoid the perilous and congested Straits of Malacca, between Malaysia and Sumatra.
Oil sellers around the Indian Ocean may favour the Chinese market over Japan and South Korea. Currently those buyers receive about 75% of their crude through Malacca.
(Excerpt) Read more at oilprice.com ...
I am sure this Chinese oil pipeline passed all of the requisite Environmental Impact studies.
You know the studies I mean. Those Governmental studies that cost more to make than the actual cost of the pipeline, and mean nothing to anyone except the whacko Environmentalists.
The ones that make sure no threatened frog or turtle will get in the way of the project.
The immature kid in me cant help but chuckle at the headline!! :snicker:
“You know the studies I mean. Those Governmental studies that cost more to make than the actual cost of the pipeline, and mean nothing to anyone except the whacko Environmentalists. The ones that make sure no threatened frog or turtle will get in the way of the project.”
A General Dynamics startup company I worked for only built half of the permitted parking lot to move a $50,000 expense to a later date as they didn’t need the space yet. So, when they went to pave it finally, the city demanded another environmental impact study. It cost $50,000. That was as much as it would have cost to pave the remaining lot under the old permit and study. (This was a former cow pasture in the middle of a huge industrial park.)
This is apparently common. So, fight your accountants when they recommend delaying a project to “save” money.
“...The line is expected to deliver over 22 million barrels yearly,
or about 440,000 barrels per day into China...”
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That math does not work out.
(well, except that 160 million is “over” 22 million...)
But mean millions of dollars annually to certain well-placed environmentalists.
This was bound to happen when they let in Taco Bell.
Thanks DeaconBenjamin.
Hehehehehehehe....
Well, I know for a fact that they won’t have to worry about the Burmese python anymore. While the snake is still endangered in its SE Asian homeland, it is eating south Florida out of house and home.
They had to do an impact study on the effect the pipeline will have on the Asian Beetle.
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