First oil flow between China, Central Asia


In late May, oil began to flow for the first time into China from Central Asia through a 970 kilometre pipeline from Kazakhstan, reported The Australian Financial Review (13/6/2006, p. 12).

Pipeline to grow to 3000km: This is expected to grow into a 3000km pipeline to move oil from the Caspian Sea to eastern China each year. It could supply the equivalent of 15 per cent of China’s current crude oil imports.

Threat to US influence: Uzbekistan signed a $US600 million joint energy exploration deal with China earlier this year. The development of the SCO into a joint security grouping is also viewed as an attempt to curb US influence in the region.

Joint military exercises held: Joint military exercises were held in March on territories in Kyrgyzstan, Uzbekistan and Tajikistan to practise interaction between security structures to neutralise terrorist groups.

The Australian Financial Review, 13/6/2006, p. 12

Source: Erisk Net  

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