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Kazakhstan Begins Oil Deliveries to China Via New Pipeline

25.05.2006 15:51 MSK (GMT +3)

On Thursday, May 25, crude oil from Kazakhstan flowed into China through a newly completed pipeline that links the two countries. This is the first time that imported oil is directly piped into China.

Industry insiders say construction of the oil pipeline is a win-win strategy for both countries as it enhances China's oil supply and proves an ideal outlet for Kazakhstan's oil export. "It has provided a direct link between Kazakhstan's rich oil resources and China's robust oil consumer market," said Yin Juntai, deputy general-manager of China Petroleum Exploration and Development Company, who was quoted by the Xinhua agency.

He said the new oil shipping route will alleviate China's excessive reliance on the Strait of Malacca,a traditional route for 80 percent of China's imported oil.

China, a net oil importer since 1993, is the world's No. 2 oil consumer next only to the United States. Last year, its crude oil import totaled 127 million tons.

Kairgeldy Kabyldin, vice president of the Kazakhstan National Petroleum and Natural Gas Company, praised the transnational oil pipeline as a "new paradigm of cooperation" between the two countries. He said it is the common aspiration of the Kazak and Chinese governments as well as the two peoples to step up cooperation in the energy sector, and such cooperation plays a vital role in promoting mutual economic development and improving the quality of the peoples' lives.

China and Kazakhstan started energy cooperation in 1997, marked by an intergovernmental agreement covering diverse means of collaboration in oil and gas fields, including an oil pipeline between western Kazakhstan and China's Xinjiang. The transnational pipeline, extending 962.2 km from Atasu in Kazakhstan to the Alataw Pass of Xinjiang, was completed in November 2005. It cost $700 million, which was shared between China and Kazakhstan, and is designed to transmit 20 million tons of oil a year.

As MosNews reported, Kazakhstan has once offered to Russia to use its pipeline to direct part of its exports to China, but the Russian authorities seem to have chosen to build their own pipeline that will take crude from Siberia to China and the Pacific Ocean coast, from where it will be transported to Japan and to the countries of Southeast Asia.These are also perfect for daily wear and for any weather as are lightweight and durable.They come in vintage designs and their bold colors and exclusive patterns make a popular choice among the young and fashionable.

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