Better Domestic Connectivity To Ease Import Needs


BMI View: The Lanzhou to Changsha oil products pipeline, running from west China to central China, will see oil products flow from the resource-rich west to growing demand centres in central and eastern China. Better infrastructure linking production to demand centres such as this pipeline would not only support an increase in refined product output in the west, but would also decrease east China's reliance on imports to meet its oil consumption needs.

China National Petroleum Corporation (CNPC) announced that it brought China's largest oil products pipeline online on November 1. The pipeline runs from the Lanzhou city in the northwestern province of Gansu, through to Changsha city in Hunan province, central China. According to the firm, the pipeline (also known as Lan-Zheng-Chang) has a design throughput of 15mn tonnes per annum (tpa) - or 301,232 barrels per day (b/d).

This pipeline is part of China's grand oil pipeline infrastructure plan. It has a strategy targeted to achieve the following goals: directing oil from the north - where some of China's largest crude oil fields such as Daqing are located at - to other parts of the country, and sending oil from west China to the east. The Lan-Zheng-Chang pipeline serves the latter goal.

Spreading Production To Population Needs
China's Population Distribution, 2011 (LHS) & Refining Capacity, 2013 (RHS) - By Region

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This article is tagged to:
Sector: Oil & Gas
Geography: China