China Thailand promotes mutually beneficial cooperation in the energy sector Thailand | China | Energy
The terminal tank area of the product oil pipeline project in northeastern Thailand. Photo by Sun Guangyong, a journalist from People's Daily Online
At the first station of the finished oil pipeline in northeastern Thailand, 100 kilometers north of Bangkok, tens of thousands of tons of diesel were slowly injected into a 40.6 centimeter diameter pipeline with the joint rotation of the exit valve by Chinese and Thai technicians, leading along a 342 kilometer oil pipeline to the tank area at the end station of Kongjing Prefecture in northeastern Thailand. On August 15th, diesel fuel in the pipeline arrived at the terminal tank area, and dozens of tank trucks were applauding as they downloaded the finished oil from the entire vehicle and drove to 20 provinces in northeastern Thailand, marking the successful completion of the entire finished oil project in northeastern Thailand.
During construction, Chinese companies have overcome many difficulties such as high crossing density and complex geological formations
As the evening approached, the reporter arrived at the construction site of the product oil pipeline project in northeastern Thailand on the outskirts of Kong Jing. The golden afterglow shone on 20 huge storage tanks, casting a golden light. The 20 prefectures in the northeast directly downloaded the product oil from this tank terminal.
The Northeast Thailand Refined Oil Pipeline Project, as one of the only two main refined oil pipelines planned in Thailand for over 20 years, is a strategic energy project in Thailand. Including a new finished oil pipeline and supporting pump stations, valve chambers, and tank area terminals, starting from Beibiao Prefecture, passing through 5 prefectures, and finally reaching Kongjing Prefecture, the pipeline has a total length of 342 kilometers. "For the first time, an 18 meter long steel pipe was used in a long-distance pipeline in Thailand, and the 'upside down method' was implemented for the installation of large storage tanks in Thailand. This is the longest horizontal directional drilling for a long-distance oil and gas pipeline in Thailand," said Wang Jifang, the deputy project manager with pride.
During the construction period, the reporter interviewed along Highway 201 from Bangkok to the northeast and saw excavators and cranes working on one side of the road. The anti-corrosion treated steel pipes were lifted into the trench, welded, backfilled, and continuously extended forward. At a construction site in Khorat Prefecture, a rock drill roared loudly. Thai engineer Tikapong told reporters, "During the construction of the railway line, many difficulties such as high crossing density and complex terrain have been overcome. The epidemic and rainy season have brought more challenges to the construction. Chinese enterprises are fully committed and have a fighting spirit, especially in the world leading high difficulty crossing technology."
On Highway 2 in the northeast, large oil tankers occasionally pass by. Driver Supa said, "Driving with a tanker truck is very concerning for safety, and transportation costs have increased oil prices. After the pipeline is built and put into operation, oil prices will decrease, which is good news for the transportation industry."
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After the completion of the finished oil pipeline project in northeastern Thailand, it will greatly shorten the delivery cycle of finished oil, save logistics costs, increase transportation volume, and maintain the stability of oil supply. Moreover, reducing the transportation of oil tankers can achieve an annual reduction of nearly one million tons of carbon dioxide emissions. Thai Minister of Energy Supatanapong stated that the project is of great significance in enhancing Thailand's energy security, improving the supply of refined oil in the northeastern region of Thailand, and promoting local economic and social development.
Strive for "Made in China", with a localization rate of over 70% for project core materials and main mechanical equipment
In the control room of the substation in the terminal tank area, the reporter saw many devices labeled with the "Huawei" logo. "The procurement team strives for 'Made in China', with a localization rate of over 70% for the main mechanical equipment of the project," said Shan Xudong, Deputy General Manager of China Petroleum Pipeline Bureau International Company.
Not only Huawei's electronic equipment, but also all 29000 tons of steel required for project construction come from Baosteel in China. At the construction site in Khorat Prefecture, the reporter saw that the steel pipe was labeled "Made by Baosteel" and marked with the production batch, specifications, models, etc. of the steel pipe. "Chinese materials are very good and meet international standards," said quality control engineer Nipeng.
Thanks to the improvement of the quality of Chinese products and the increase in international recognition, a large number of "Made in China" are being used in the finished oil pipeline projects in northeastern Thailand. More importantly, it can form a virtuous cycle. "Even during the project bidding stage, it is possible to directly use this more competitive equipment price as a component of the total project bidding price, increasing the competitiveness of Chinese companies in competing in overseas markets," said Shan Xudong.
In line with the "the Belt and Road" initiative, strengthen the connectivity of Thailand, Laos, China and other neighboring countries
The northeastern region of Thailand is adjacent to Laos. The terminal tank farm in Kongjing Prefecture is only 250 kilometers away from the capital of Laos, Vientiane, 280 kilometers away from Shawan Najib, and 400 kilometers away from Pakse. The Northeast Finished Oil Pipeline Project will not only supply finished oil to the Northeast region of Thailand, but also radiate to relevant areas in Laos.
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The domestic market in Laos relies on imports for the consumption of gasoline and diesel, with imports from Thailand accounting for about 90%. The current way to import petroleum products from Thailand is by truck from Bangkok to Vientiane, with a distance of about 700 kilometers between the two places. After the completion of the finished oil pipeline project in northeastern Thailand, the oil products will be transported to the Kongjing Oil Depot, which is only 250 kilometers from this depot to Vientiane. This will greatly shorten the delivery cycle and save logistics costs.
The finished oil pipeline spanning the central and northeastern regions of Thailand is not only of great significance in promoting local economic and social development, but also conducive to strengthening the connectivity between Thailand and Southeast Asian countries such as Laos and Myanmar. The project was listed in the "the Belt and Road" special loan and major international business project library by the National Development Bank, and it is also the first energy infrastructure construction project in Thailand led by the National Development Bank to organize international syndicated financing support. "The future pipeline plan will continue to extend towards the northeast of Thailand, connecting to Laos and strengthening energy connectivity between neighboring countries such as Thailand, Laos, and China," said Panu, Chairman of the Board of Directors of Thailand Pipeline Network Co., Ltd.
Since the "the Belt and Road" initiative was put forward 10 years ago, cooperation in various fields has yielded fruitful results, bringing tangible benefits to people of all countries. Puwana, chief editor of Thailand's "Bangkok Today", said that the "the Belt and Road" will achieve mutual benefit and real development, just like the product oil pipeline in northeastern Thailand, and benefit a large number of ordinary people. Energy cooperation is an important area in the joint construction of the "the Belt and Road", which will promote participating countries to achieve high-quality sustainable development.
The ceremony for the full production of finished oil projects in northeastern Thailand. Parami camera
A tanker truck loaded with finished oil is traveling from the terminal tank area to various parts of northeastern Thailand. Parami camera
Technicians extract finished oil transported through pipelines for quality inspection. Parami camera