China's Westward One Belt One Road Strategy

Electricity Trade between China and Nepal. Good diversification for Nepal but...

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Nepal-China Power Line Feasibility Report Filed
Last updated on February 11, 2018 Posted on February 9, 2018 by
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Nepal’s Energy Ministry has sent a preliminary feasibility report to the Chinese government about the cross-border transmission line, which will allow electricity trade between Nepal and China’s Tibet Autonomous Region.

The details:
  • The report was dispatched to the Foreign Ministry for forwarding to the Chinese Embassy in Kathmandu which will eventually reach the State Grid Corporation of China (SGCC).
  • The SGCC is the focal institution for the development of cross-border power lines between China and Nepal.
The Backstory:
  • Back in early 2017, SGCC officials had visited Nepal to hold discussions with the Energy Ministry and NEA to build a 400 Kv power line linking Rasuwagadhi and Kyirong across the northern border.
  • During that meeting, the NEA Managing Director, Kulman Ghising had asked the Chinese delegation to extend the proposed transmission line further south up to Galchhi so that the power line could be linked to the Nepal-India cross-border transmission line proposed to be built in Rupandehi district.
According to the report:
  • The 80-Km transmission line will link Galchhi in Dhading district with Rasuwagadhi on the border with China in the north.
  • There are three possible routes for building the high voltage power line. Two of the alignments pass through Langtang National Park while the third one goes around it.
  • According to Komal Atreya, chief of the monitoring department of the
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    (NEA) who has been appointed as the focal person to coordinate with the Chinese side, the third route has been recommended from Nepal’s side, to avoid the National Park. Nepal has also sought financial assistance to build the cross-border transmission line which is estimated to cost Rs. 10 billion.
What they are saying:
  • “As the transmission line is necessary to supply electricity to the railway service which China plans to build up to Kathmandu, the northern neighbor is very keen on developing it,” said Komal Atreya.
  • “China has erected a high voltage transmission line up to Shigatse, and if we show adequate commitment, they have agreed to extend it to Kyirong within one and half years, and ultimately connect it with the power line in Nepal,” he added.
  • “After we receive the feasibility report prepared by the Chinese side, we will invite SGCC officials to Nepal or send our people to China to hold talks,” said a senior official at the Energy Ministry.
  • “We will wait for the report prepared by the Chinese side before arranging bilateral talks to take the matter forward.”, he added.
 
Not all is well from the west.

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China must reevaluate Central Asian energy supply
Source:Global Times Published: 2018/2/8 22:23:40
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Illustration: Peter C. Espina/GT



The sharp drop of liquefied natural gas (LNG) shipments through a key Central Asian pipeline network has put the already-tight domestic LNG supply situation to the test.

There are two reasons for the plunging shipments: first, LNG demand increased in the supplier countries themselves; second, the suppliers were withholding LNG in hopes of getting better prices in other markets. Those factors prompted the suppliers to break the terms of their contracts with China.

According to a statement by China National Petroleum Corp (CNPC) issued on January 31, the nation's LNG supply situation has been deteriorating. The volume of LNG received through central Asian pipeline networks has fallen by nearly half, domestic news portal jiemian.com reported. The sudden cuts by two Central Asian countries, Turkmenistan and Uzbekistan, added a new risk to the Chinese energy supply network. China needs to re-evaluate the security of its energy supply network in Central Asia.

According to insiders at China's three major State-owned oil companies, the Central Asian countries failed to provide China with the contracted volumes of LNG with the excuse that they didn't have enough money to repair broken LNG equipment. A notice issued by CNPC stated that Central Asian countries owe China an average LNG volume of 30 million cubic meters per day, according to jiemian.com

Sources also said that China National United Oil Corp is negotiating with these LNG suppliers. But it seems that Chinese oil companies have no bargaining chip if the suppliers don't keep their end of the deal. Instead of China, the suppliers can potentially send LNG to Europe at a higher price.

The cut in LNG supplies has added a new risk factor to China's energy security, with domestic LNG inventories at record lows. Data from the Beijing oil & gas transportation center showed that the domestic natural gas pipeline network had "emergency" storage of 1.99 billion cubic meters at the end of January. According to jiemian.com, as of January 30, the volume available for sale in the current pipeline network was 420 million cubic meters per day whereas demand was 445 million cubic meters per day, in addition to the network's own use of 5 million cubic meters per day. So the domestic supply gas is about 30 million cubic meters per day.

As a result, CNPC must ration the supply and sale of LNG to avoid a total collapse of the LNG pipeline system.

The China-Central Asia LNG pipeline, which starts at the border between Turkmenistan and Uzbekistan on the banks of the Amu Darya River, is one of the world's longest LNG pipeline. The gas pipeline runs about 10,000 kilometers, with 188 kilometers in Turkmenistan, 530 kilometers in Uzbekistan, 1,300 kilometers in Kazakhstan and 8,000 kilometers in China.

Turkmenistan is the largest pipeline LNG exporter to China. But since January, the gas concern there has shut down supply three times.

If all these figures are true, the risk is obvious: Central Asia has emerged as a broken link in the international energy security network that China has made such effort to forge.

With China participating in globalization as the "world's factory," ensuring energy security is vital for China. China has put huge resources (in banking, diplomacy, investment, markets and public finance) and effort into building a five-channel international energy supply network to satisfy the world's largest oil and gas demand.

As China adjusts its energy consumption structure, switching to green energy, the demand for LNG will constantly grow and create a heavy dependency on foreign resources. The high dependency on LNG from Turkmenistan has become a potential security risk.

If this situation continues, it will not only lead to unexpected problems for State-owned petroleum corporations, it will also leave the Chinese government unprepared. If the key passage of LNG is not stable, the security of China's international energy supply network must be re-evaluated.

This article was compiled based on a report by Beijing-based private strategic think tank Anbound. [email protected]

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Brigadier
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is now connected with Central Asia by road network while by passing
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....


Bishkek, Kyrgyzstan: Central Asian cargo traffic will now link with Gwadar Port of Pakistan which is the flagship port of One-Belt-One Road (OBOR) project of China through China Pakistan Economic Corridor (CPEC), reports Dispatch News Desk News (DND) News Agency.

According to details, Central Asian cargo traffic will have access to Gwadar Port of Pakistan through Kashgar while bypassing Afghanistan as
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is sending its first cargo shipment loaded on trucks to China through
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,

CPEC route was already link with Tajikistan through Kashgar,
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and China did dry run of CPEC last year from
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Port to
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.

Uzbekistan is sending its first convoy with an export cargo along the new transport corridor which is “Tashkent – Andijan – Osh – Irkeshtam – Kashgar route”.

The emergence of a new transport corridor between Uzbekistan, Kyrgyzstan and China was initiated by President Shavkat Mirzieev in May 2017. In October, a pilot car rally was launched with the participation of trucks from Uzbekistan, Kyrgyzstan and
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.

The products of exporters of Uzbekistan and neighboring countries will be delivered to the consignees by vehicles of the joint venture. Upon arrival at the final delivery point, the city of Kashgar, the column will depart on the return route already with the imported products.

Islamabad Bureau adds:

“Physically, Pakistan is now directly linked with Kyrgyzstan, Tajikistan and Uzbekistan through two routes diverting at Kashgar (Kashi) while Kyrgyzstan and Uzbekistan are already linked with Kazakhstan through roads and railways”, said Agha Iqrar Haroon who is a Development Observer working in the region of Central Asia.

The distance of a total length of 920 kilometers will be covered in 31 hours in total with 15 hours of rest time for trucks and 16 hours of run.

It is pertinent to mention that CPEC is a flagship project of China’s “One Belt One Road” (OBOR) initiative. OBOR will be critical bridge that will connect China with its neighbours in Central Asia and South Asia but will go as far as Middle East and Africa.

By linking China with the Arabian Sea and the Persian Gulf through Pakistan, CPEC will expand trade potential and enhance energy and security presence of China not only in the region but as far as Africa through Gwadar Port of Pakistan.

CPEC can be considered as a package that will boost Chinese, Central Asian and Pakistani economies by providing transport and energy: roads, bridges, gas pipelines, ports, railways, energy plants to Pakistan and a deep regional security mechanism to China while overseeing and manage safekeeping of Chinese assets.

Proposed by Chinese President Xi in 2013, the “One Belt One Road” (OBOR) initiative (program) is an estimated $5 trillion infrastructure spreading over 60-plus countries across Asia, the Middle East, Europe and Africa.

Chinese President considers this initiative as a “project of the century” and a biggest narrative that China is setting as an example in globalization by filling the gaps left by the US policy makers.

The “One Belt” part of it refers to the Silk Road Economic Belt while the “One Road” refers to the 21st-century Maritime Silk Road— a revival of the ancient Silk Road trading routes.

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main-qimg-4258a3fcc0ef8ef89a2f2484964ce261
 

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Brigadier
The above train from
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to
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travels through
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,
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,
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and
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. Distance traveled 10,214 kms.

Started on the 13th of June last year. 200 containers per trip n there are plans to increase to 300. Travelling time about 14 days. If by ship takes abt 2 months.
Spectacular shots....

 

supercat

Major
Itochu climbs aboard China's Belt and Road Initiative
Japanese company uses improved logistics to start Japan-Europe freight service

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A freight train leaves Dalian, China on Oct. 27 bound for Bratislava, Slovakia. The trip kicked off the start of a new China-Europe cargo train route stretching 10,537km. © AP

TOKYO -- Japanese trading house
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is launching a freight transport service linking Japan and Europe via China. The move comes after the company concluded that beefed-up logistics networks under China's
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would increase cargo movement.

The service, which will use existing local railway logistics between China and Europe, will begin by the end of March. Itochu Logistics, a subsidiary of Itochu, has been conducting trials of the Japan-Europe freight service since January.

Itochu has been working with logistics providers Chinese Railway & Itop Logistics in China and Gefco in Europe.

The first leg of the service will involve shipping cargo by sea from Japan to Dalian and Shanghai. After that, the cargo will be trucked by Itochu Logistics' to train stations inside China, including one in the city of Manzhouli.

There are two rail routes: a northern route traversing Russia, Belarus and Poland; and a southern route to Hamburg, Germany and other areas via Kazakhstan.

Shipping in both directions will take about 25 days, compared to around seven days by air, but be up to 50% cheaper.

Itochu expects to transport automotive parts, electronics and apparel from Japan to Europe, and receive automobiles, baby formula, processed foods and other products from the continent.

The company will be responsible for all logistics.

Under Chinese President Xi Jinping's Belt and Road Initiative, aimed at expanding land and maritime links in Asia, Europe and Africa, the number of freight train services between China and Europe is growing, totaling about 3,600 in 2017. The number is expected to
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.

In response, Japanese companies are initiating a Japan-Europe cargo service via land and sea transport.

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will also
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as early as this spring.

Last June, Japanese Prime Minister Shinzo Abe said he would
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. His statement provides a tailwind to Japan's trading houses as they seek to take advantage of new business opportunities unlocked by the initiative.

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The B&R will enhance geographical linkages by providing improved road, rail and air transportation systems, facilitating people-to-people contact.

This should stimulate academic, cultural and regional knowledge and cultural exchanges, increase the volumes of trade and business, and facilitate energy generation and transfer. These changes will, ideally, optimize the business environment and enhance mutual cooperation. The B&R’s promoters argue that
at this ‘win-win’ model will result in a well-connected, integrated region of shared destiny, harmony and development.

The CPEC is aimed at creating economic regionalisation in a globalized world. Its promoters see it as providing hope of future regional improvement with peace,development and economic growth Political economist Asad Abbasi1 has looked at the benefits that China expects for itself. ‘For Pakistan, CPEC might represent “prosperity”, “unity”, etc., but for China it is just one small part of Yi Dai Yi Lu. This is usually translated into English as “One Belt One Road” (OBOR) but according to Tim Summers, senior consulting fellow at Chatham House, the English translation fails to convey the dynamic meaning that the phrase encapsulates.

Yi Dai Yi Lu conjures up two different epochs of Chinese history: Silk Road of Tang Dynasty (618–906 AD) and modern silk maritime trade routes from coastal China. The aim of the project is to connect China with 65 countries in Asia and Europe. China estimates that OBOR will add $2.5 trillion to its trade over the next decade’ (Abbasi 2016).

To summarize, the four key pillars of CPEC include investments in the areas.

Favored by geography, Pakistan is positioned as a bridge between the
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landmass that is home to the Silk Road Economic Belt, and the
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Sea, which is an essential link in the 21st Century Maritime Silk Route.

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Major
Egypt will get a new capital, and China will play a role in building it.

China to Finance Majority of New Egypt Capital's Tower District
  • Chinese banks to finance 85 percent of CSCEC’s project
  • Grace period of up to 3 1/2 years before repayment to begin
Chinese banks will provide 85 percent of the funding needed for the $3 billion skyscraper-studded portion of Egypt’s new capital which is being developed by the China State Construction Engineering Corp., a senior official with the state-run company said Sunday.

Egypt’s Housing Ministry is responsible for the remaining 15 percent of costs not covered by the Chinese banks, Zhao Qiang, CSCEC Egypt’s deputy general manager, said in an interview with Bloomberg.

He said the company is negotiating with several local contractors, but declined to provide additional details. The business district is slated to include 20 high rises and a 385-meter-tower expected to be the tallest in Africa

Egypt will be given a grace period of 36 months to 42 months -- until construction is completed -- before repayment begins on the 10-year loan, Assistant Housing Minister Khaled Abbas said in an interview. Loan terms are still be negotiated, but the interest rate is expected to be between 2 percent to 3 percent, he said, adding that the Housing Ministry’s portion is also backed by a sovereign repayment guarantee.

The new administrative capital is one of President Abdel-Fattah El-Sisi’s flagship mega-projects -- a venture aimed at creating from ground-up a state-of-art city to which government ministries and other services would be relocated.

The project was unveiled as Egypt embarked on a series of sweeping changes aimed at reviving an economy battered after the 2011 uprising that toppled Hosni Mubarak. Egypt’s military holds a 51 percent stake in the project, with the Housing Ministry carrying the remaining stake.

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