China National Petroleum Corp (CNPC) and Myanmar Oil and Gas Enterprise jointly own Myanmar-China pipeline that extends 470 miles (771 km) northwest to Kunming where PetroChina owns a 260,000bpd refinery. It allows China to import crude faster from the Middle East and Africa. The crude oil began flowing through the pipeline in spring 2017, which sourced primarily from the Middle East Gulf.
Since the terminal in Kyaukphyu port started up last year, we can see from Reuters vessel tracking data that there have been nearly 80 million barrels of crude discharged there. Saudi Arabia has represented 46% of crude imports, followed by Oman, Kuwait and U.A.E with 9%,7% and 6% of the crude imports respectively.
As from the chart below, a couple of Iranian cargoes have also been delivered in the last few months. Although we saw a dip in total Iranian barrels into China last month, it is expected that Iran will continue to push out more volumes to China and other Asia countries. Chinese buyers have begun to shift their cargoes to vessel owned by NITC recently in order to bypass U.S. sanctions. Clearly, Kyaukphyu port in Myanmar can also be a perfect outlet for China to receive Iranian crude.
Sources:XINDE MARINE NEWS
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