Gwadar–Kashgar Crude Oil Pipeline

The Gwadar–Kashgar Crude Oil Pipeline is a planned initiative intending to build a crude oil pipeline connecting Gwadar, Pakistan to Kashgar, China. The project has approximated an investment of a substantial amount, around $10 billion, for the pipeline's construction. The anticipated transmission capacity of the pipeline is projected to reach up to one million barrels per day.[1][2]

Gwadar–Kashgar Crude Oil Pipeline
Location
CountryPakistan, China
General directionSouth to North
FromGwadar, Pakistan
ToKashgar, China
General information
TypeCrude oil
OperatorM/s China Zhenhua Import and Export Co Ltd

Background

The pipeline holds strategic significance by enabling diversification and acceleration of crude oil imports for Beijing. Given Gwadar's proximity to the Persian Gulf, where approximately 40% of the world's crude oil is sourced, this venture is vital. Sources suggest that China currently satisfies 50% of its oil demand by importing from the Middle East. The pipeline is expected to substantially shorten the transportation distance for delivering crude oil to China, ultimately bolstering energy security.[3][4]

Economic impact

The Gwadar–Kashgar Crude Oil Pipeline possesses the potential to reshape not only Pakistan's economy but also the broader region, sparking economic growth and fostering prosperity. This pipeline initiative is anticipated to stimulate economic activities, leading to positive financial outcomes for the region.[5]

References
  1. "From Gwadar-Kashgar: Crude oil pipeline requires $10 billion investment". The Express Tribune. May 17, 2018.
  2. "China to build mega oil pipeline from Gwadar to Kashgar". The Nation. June 13, 2016.
  3. "Pakistan working on Gwadar-China oil pipeline". The Express Tribune. July 12, 2016.
  4. "From Gwadar-Kashgar: Crude oil pipeline requires $10 billion investment". The Express Tribune. May 17, 2018.
  5. Guo, Fei-fei; Huang, Cheng-feng; Wu, Xiao-ling (November 1, 2019). "Strategic analysis on the construction of new energy corridor China–Pakistan–Iran–Turkey". Energy Reports. 5: 828–841. doi:10.1016/j.egyr.2019.06.007. hdl:10419/243631. S2CID 198612357 – via doaj.org.
This article is issued from Wikipedia. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.