Kazakh oil pours into China through pipeline

Crude oil from Kazakhstan poured into China on the morning of May 25 through a crossborder pipeline that is designed to transmit 20 million tons of oil a year, 15% of China’s total crude oil imports for 2005. This was the first time in history imported oil has been directly pipelined into China, and experts say the move will help enhance China’s oil supply and provide an ideal outlet for Kazakhstan’s oil exports.

Industry insiders say construction of the oil pipeline is a win-win strategy for both countries as it will hopefully ease China’s energy dearth and provide an ideal destination market for Kazakhstan’s rich oil resources. “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.

Asia Times