A crude oil pipeline with an annual carrying capacity of 20 million tons was put into operation in east China’s Shandong Province on Monday.
It is the first pipeline of such scale to start operations during the period of the 14th Five-Year Plan (2021-25) in China.
Starting from Yantai Port in Shandong Province, the pipeline, over 370 kilometers long, is also the first public crude oil transmission line to directly link the port to oil refineries.
Able to heat and insulate, the pipeline further facilitates the offloading, storage and transmission of petroleum products with higher efficiency and less oil loss during the transportation process, Yantai Port officials said.
Luo Zuoxian, head of intelligence and research at Sinopec’s Economics and Development Research Institute, said the crude transportation pipeline will significantly reduce companies’ logistics costs while reducing carbon emissions from the truck transport.
The project will also ensure a steady flow of surface transportation, which in turn will ensure a stable supply chain of importing crude oil by sea, Luo said.
“Compared to other means, pipeline transportation is a relatively more stable and safe way to transport crude at lower cost,” he said.
“The pipeline will significantly increase the power supply capacity of Yantai Port while being the demonstration integrated project for importing, transporting and refining crude oil in coastal regions.”
China has stepped up infrastructure construction to boost both domestic demand and economic growth in recent years. As a major infrastructure to ensure the supply of oil and gas, pipelines play an important role in ensuring national energy security.
BloombergNEF analyst Li Ziyue said earlier that more pipelines needed to be built, including gas pipelines, to satisfy an ever-growing appetite for gas across the country.
Invested by Shandong Port Group’s Yantai Port, the crude oil pipeline took 17 months to complete after overcoming numerous geological obstacles and the impact of the COVID-19 pandemic.
With a 315-kilometer major isolation pipeline and multiple branches, the crude transportation capacity of Yantai Port will be increased to 40 million tons per year from the previous 20 million tons, which will further improve transportation capacity. of crude in eastern China.