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New trade route between the Arabian Gulf and Myanmar could add to VLCC demand. What BD Plans?

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July 12, 2014

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New trade route between the Arabian Gulf and Myanmar could add to VLCC demand. What BD Plans?

The latest factor in tanker demand could be the construction of a new pipeline which would avoid the Straits of Malacca. Such a development could hinder ton-mile demand growth, but could also lead to an increase of demand for VLCCs from the Arabian Gulf to Myanmar. According to a recent report from shipbroker Poten & Partners, “when thinking about the prognosis for tanker demand growth, the most immediate threat, second to the construction of a canal, is the development of overland transportation. One project in particular, the Sino-Burma pipeline, raised eyebrows amongst the VLCC shipowning community when it threatened to significantly reduce voyage time between the Middle East and China by avoiding the Straits of Malacca.

According to Poten, “the 440,000 barrel per day Sino-Burma pipeline was originally conceived in 2004 as a way of supplying 200,000 barrels per day to a new refinery at Kunming, and other outlets in the provinces of Chongqing and Sichuan. Crude oil would be shipped from the Middle East to the port of Kyaukpyu, Myanmar, which is deep enough to accommodate VLCCs. In view our deep sea port project at sonadia with Chinese assistance and Chittagong – Kunming Road – Rail project can our policy maker dream one such pipeline.

Source : Hellenic Shipping News Worldwide

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