The first exposure obstruction factor for China-Myanmar oil pipeline has not been ruled out

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On April 24, the reporter learned from the Yunnan side that PetroChina and Sinopec have carried out preliminary work for half a year and are currently conducting pre-feasibility studies for the project.
The reporter was informed in the interview that the program is still controversial in terms of cost, cross-border and other specific contents. According to news from the National Development and Reform Commission, the issue involves China's energy security strategy and the energy industry layout, which has not yet been finalized.
The first time for the program?
In response to the recent uproaring Sino-Burmese crude oil pipeline construction, on April 24, the General Office of the Yunnan Provincial People’s Congress sent a reporter a proposal for a delegation from the Yunnan Province during the National “Two Conferences,” which disclosed the project’s Preliminary research program.
The proposal stated that as early as August 2004, Wu Lei, an expert on energy issues at the School of International Relations at Yunnan University, proposed the "Proposal for the Construction of a Oil Pipeline from Myanmar's Sittwe to Kunming."
In July 2005, the National Development and Reform Commission and the Ministry of Energy of Myanmar signed a memorandum of understanding on the Sino-Myanmar crude oil pipeline; after that, at the second Greater Mekong Subregion Cooperation Conference, the Myanmar government once again proposed to speed up the process of energy cooperation with China; and the National Development and Reform Commission has repeatedly Listen to reports on preliminary research results of PetroChina and Sinopec. Pipeline construction is on the agenda.
The specific plan is to focus on the four ports of Sittwe, Dianbai, Danchong and Dansong as the starting points of the Sino-Myanmar oil pipeline and Ruili as the point of entry for the pipeline.
Construction of 300,000 tons of crude oil terminals and 600,000 cubic meters of oil depots in selected Myanmar ports. To build a large-scale oil refinery in Yunnan, the first-stage oil refining capacity is 20 million tons per year, and the construction of 1 million tons per year of ethylene chemical industry. The plan also makes detailed plans for the time of exploration and construction. At the same time, it also proposes ideas for the second and third phases of the pipeline.
As for pipeline oil sources, the proposal states that it will make full use of South East Asia's oil and gas resources. Asia is the second largest oil and gas-rich region after the Middle East. Light Myanmar's proved oil reserves reach 3.2 billion barrels and natural gas reserves are 1.44 trillion cubic meters. However, experts believe that the current level of geological exploration in Southeast Asia is low, and the oil source will come mainly from the Middle East and Africa for a long period of time.
The reporter learned that after the proposal was put forward, the Yunnan Provincial Government will fully promote the implementation. Relevant person in charge of Sinopec Yunnan Branch told the reporter: “The Sino-Myanmar oil pipeline is mainly driven by the Yunnan provincial government.”
One of the reasons is the local demand for oil energy. Calculated at an average annual growth rate of 6%, by 2010, the demand for gasoline and diesel in the five southwestern provinces will reach 22.56 million tons, and the supply gap will reach 21.11 million tons. If the first stage of the China-Myanmar oil pipeline project is successfully implemented, 20 million tons of crude oil can produce 115 to 450.70 million tons of gasoline and diesel oil, to solve most of the gaps. After the second phase, if 40-60 million tons of crude oil can be imported, the products can be sold to Hunan and Hubei, and even to Southeast Asia, in addition to covering the southwest region.
Project Progress
There are obviously deeper reasons why Yunnan Province urgently promotes China-Myanmar oil pipeline projects.
Yunnan has a single pillar industry and basically has one tobacco. The five pillar industries implemented by the Yunnan Provincial Party Committee and the provincial government have carried out two five-year plans, but so far, the added value of the tobacco industry still accounts for 50% of the province's industrial added value, and fiscal revenue accounts for 60% of the province. Due to the lack of support from major industrial projects, the planned investment plan was not completed in the first three years of the 10th Five-Year Plan. Therefore, relying on China-Myanmar oil pipeline to build a national oil refining and chemical base in Yunnan, and accelerate the formation of group pillar industries, become a huge force for Yunnan Province to declare China-Myanmar oil pipeline projects.
The local government in Yunnan considers that there are no large-scale refinery companies in the southwest region, and the southwestern provinces and regions rely mainly on oil refineries in South China and Northwest China to provide refined oil, which has a long transportation distance and high costs, especially in Yunnan, and is at the end of the country’s refined oil supply.
The bright prospects of the project even opened up the imagination to other provinces and cities in the southwest. According to report, the Chongqing Municipal Government and the Sinopec Chongqing Branch are also reporting to the State Council to strive for the extension of the pipeline into Chongqing, which will supply 1 million tons of refined oil to Chongqing each year.
Yunnan Province clearly stated in its proposal that the current external conditions are good and requested the National Development and Reform Commission to establish a project for the Sino-Myanmar oil pipeline construction project as soon as possible, start construction as soon as possible, and clarify as soon as possible the PetroChina or Sinopec as owners, and carry out substantive preliminary work as soon as possible.
However, as far as the reporter knows, the proposal has been submitted to the national decision-making level on March 6 and has not yet been approved. On April 24th and 26th, the Yunnan Provincial Development and Reform Commission Energy Bureau official twice said in a telephone interview: “China-Myanmar oil pipeline construction project is still in the early stage of research, and the National Development and Reform Commission has not approved it. We do not have the latest things to provide. ."
On April 24, the director of Public Relations Department of PetroChina, Bi Jianguo, said in an interview that he had not heard of the approval of the project. Chen Ge, a spokesperson for Sinopec, also said that it is not clear about the matter and there is no relevant news to release. Relevant person in charge of Sinopec Yunnan Branch told the reporter that PetroChina and Sinopec are all fighting for the State Council. As for who will implement the project, Sinopec submitted a report before October last year, but it has not yet been approved.
The three main reasons
Since last year, the construction of China-Myanmar oil pipelines has risen to the national strategic level, but the actual debate on whether to build or not has continued.
On April 24, Lin Xixing, an associate researcher at the Institute of Southeast Asian Studies at Jinan University, told reporters on the telephone that the news about the construction of China-Myanmar oil pipeline was already well-known in Myanmar. Now it is only the Chinese government that has not stated its position. PetroChina, Sinopec and CNOOC all signed oil and gas exploration contracts in Myanmar.
He pointed out that the Sino-Myanmar oil pipeline not only has an impact on Yunnan's regional economy, but more importantly, it is a short cut for China to crack down on the "Strait of Malacca Straits".
However, Han Xiaoping, CEO of China Energy Network, believes that it is not necessary to build China-Burma oil pipeline temporarily. He said that there is little possibility that the Straits of Malacca will be blocked. Once blocked, it is also an enemy of Japan, South Korea, and other Asian countries that rely on oil imports. The second is to address the current situation of overcrowding in the Straits of Malacca, which can be solved through optimization measures. Third, the cost of building pipelines is far higher than that of oil tankers. The terrain of the project is complex. Crossing mountains with complex geological structures are required. In addition to passing through the turbulent rivers such as the Lancang River and the Irrawaddy River, it needs to pass through the tropical forests of Xishuangbanna, etc. Debris flow and landslide accidents often occur, and technical problems are not easy to solve.
Some people claimed that this pipeline needs 2 billion U.S. dollars in investment, which does not include the cost of building related facilities in Yunnan. If these are added, the estimate is no less than 5 billion U.S. dollars. The Maoming-Kunming oil product pipeline laid by Sinopec has a total length of 1,740 kilometers and a total investment of 3.5 billion yuan.
Dong Yan, director of the National Development and Reform Commission’s Institute of Integrated Transport, said in a telephone interview with reporters that considerations such as transnational paving must now be considered. The personage concerned analyzed that China-Myanmar oil pipelines are very sensitive because they affect the Singapore trade, and Vietnam and India’s oil supply, and involve national interests.
In addition, experts and scholars have also put forward other proposals, such as the construction of the Cradle-Island canal, the construction of the "sea-land transport land bridge" on the southern coast of Thailand, and the Pan-Asian Oil Continental Bridge. These are all powerful plans for Sino-Myanmar oil pipelines.
"Therefore, the right to approve this project should be at the central government level," said the person concerned.

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