China's Strategic Oil Production Pipeline Passing the West China Oil Pipeline into Operation in July
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On June 12, a reporter learned from China National Petroleum Corporation’s West Pipeline Co., Ltd. that the western crude oil and refined product pipelines in Shanxi Shanshan, Urumqi, and Lanzhou have been largely connected. The refined oil pipeline is set to begin pre-acceptance work on June 14, marking a major milestone in the project. It is expected that the refined oil pipeline will be officially operational by July this year, while the crude oil pipeline will be fully commissioned next summer. Once completed, these two pipelines will link with the eastern oil network, forming the strategic "West China Oil Transportation" route.
The Western Shanxi crude and refined oil pipeline project, stretching from Shanshan in Xinjiang through Urumqi to Lanzhou, is a key national infrastructure initiative. The crude oil pipeline system spans 1,878.4 kilometers from Shanshan to Lanzhou, Gansu Province, transporting crude oil from the Tarim, Junggar, and Turpan-Hami basins. With an annual capacity of 20 million tons, it plays a vital role in supplying the central and eastern regions. The refined oil pipeline, covering 1,903 kilometers, delivers refined products from Urumqi, Karamay, and Dushanzi petrochemical companies, with a design capacity of 10 million tons annually.
Construction of the Western China crude and refined oil pipeline began in September 2004. Both pipelines were laid in the same trench, and stations were shared to optimize efficiency. The total investment for the project reached 14.6 billion RMB. Currently, the main pipeline construction is nearing completion, with preparations for refined oil transportation intensifying rapidly.
According to officials at CNPC’s West Pipeline Company, for years, there has been a significant imbalance between oil production and consumption in China. Most of the oil consumed in central and eastern regions must be transported from other areas. Meanwhile, the northwest region is rich in oil resources, making the need for "transferring oil from west to east" increasingly urgent. With railway transport reaching its limits, pipeline networks have become essential for implementing the "West-East Oil Transport" strategy.
The construction of these two large-scale, long-distance, high-pressure pipelines is expected to create a complete economic chain across the western region, linking production, refining, chemical industries, transportation, and sales. This will open up new oil channels connected to Central Asia and integrate with the northeast and northern China pipeline networks. By connecting Xinjiang, Gansu, eastern, and southwest oil pipelines and petrochemical facilities, the project will effectively bridge the abundant western resources with the demand in the eastern market, establishing a massive "West Oil East" and "North Oil South" supply network.