Mohan on the Chinese side and Boten in Laos constitute the main border trading centres along the China-Laos border.įig. On the Chinese side, the Kunming-Bangkok Expressway is already in place connecting Kunming with Mohan. In January 2018, the two countries agreed to extend the highway to Boten in Luang Namtha province on the China-Laos border.
Earlier, the project was planned to link Vientiane and Vang Vieng in Laos. 2).įurther south, the China-Laos Railway will be eventually connected to the China-Thai Railway line linking the north-eastern Thai city of Nong Khai and Bangkok, the capital city of Thailand.Ĭhina-Laos Expressway is a major transport infrastructure project as part of Lao's land-link strategy.
The railway project which started construction in December 2016 is an extension of the Yuxi-Mohan Railway in Yunnan province of China (See Fig. On December 2, 2018, the first concrete beam of the China-Laos railway was erected in Vientiane, the capital of Laos. Under BRI, China and Laos are building railway and expressway projects connecting the two countries. 2 China-Laos and China-Thailand Railways under construction Being a country with no access to the sea, the Lao government is working towards transition from a 'land-locked' to a 'land-linked' country in its strategy for economic development and transport infrastructure development.įig. Here comes the significance of BRI in Laos and other Southeast Asian nations. Moreover, China is looking forward to enhance economic integration with the neighbouring Southeast Asian nations by building transport connectivity with the neighbouring countries. A Suezmax tanker named 'United Dynamic' with the capacity to transport 140,000-tonnes crude oil offloaded crude oil for the first time to start operation of the oil pipeline. The first offloading of crude oil at Made Island oil port in Myanmar's Rakhine State happened in April 2017. It is also aimed at industrial and economic development of the relatively underdeveloped south-western China. The oil terminal on Made Island in Myanmar's Kyaukpyu feeds the pipeline for the 260,000 bpd oil refinery plant at Anning.Ĭhina has built the China-Myanmar oil pipeline to diversify its energy import routes and reduce dependence on the Strait of Malacca. The crude oil to the refinery in Yunnan province comes passing through the 2,400-km long pipeline with a capacity to supply 440,000-barrel per day (bpd). The Anning oil refinery near Kunming in Yunnan province is gradually tapping oil markets in Southeast Asia. Thus, the China-Myanmar oil pipeline has helped Laos diversify its import route (See Fig. With the arrival of Chinese refined oil into the Lao market, the Nationwide Trading Petroleum Public Company of Laos (NTP) became the first Lao oil company to import petroleum products directly from China. Traditionally, Laos imports petroleum products from or via Thailand and Vietnam. 1 China-Myanmar Oil Pipeline and Anning oil refinery The oil tankers which were loaded in China's Kunming arrived at Boten oil depot in Lao covering a distance of over 700 km.įig. Beijing is working towards expanding its influence in Laos through export of petroleum products and construction of transport infrastructure under the Belt and Road Initiative (BRI).įollowing a two-year long preparation and feasibility study, PetroChina International (Yunnan), a subsidiary of PetroChina group, on October 31, 2018, exported over 64 tonnes of diesel to a Lao company marking the first export of Chinese refined oil to Lao market. Also, Laos is one of the closest allies of China in the region. The central position of Laos provides China overland access to Myanmar, Thailand, Cambodia and Gulf of Siam. It includes projects such as China-Myanmar pipelines, China-Myanmar Economic Corridor, China-Thailand Railway, China-Laos Economic Corridor, Cambodia's master plan for a transport system etc.Ĭhina's interest in Lao People's Democratic Republic (in short 'Laos') is driven by geographical realities in the Peninsula. China spreads wings across the Indochinese PeninsulaĬhina is spreading its wings across the Indochinese Peninsula with various connectivity projects which will have long-term implications in the region.