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China Is Betting Its Energy Future On This Tiny, Foreign City

Tyler Durden's picture




 

No, it's not New York, or London; Moscow, Geneva, Vancouver or even D.C. According to Clarmond House, the most important foreign city - the one which China is making the center of its largest offshore infrastructure project - is the tiny port of Gwadar (population 85,000) which Pakistan purchased from Oman in 1958 for $1 million, and which has become the critical hub of China's future energy policy.

Here is why, courtesy of Clarmond House:

A Postcard From Gwadar

In 1958 Pakistan purchased Gwadar from Oman for 5.5billion rupees. It remained a sleepy outpost for almost 50 years until 2007 when the governments of Pakistan and China jointly agreed to develop it from scratch into a full-scale port city. And in the last 24 months Gwadar’s prospects have improved even more.

China, the world’s largest oil importer, gets the majority of this oil from the Persian Gulf. Just look the world map and consider the journey of an oil tanker to reach Shanghai, only for the oil to then arrive in western China! The journey by sea is 16,000 miles, takes 2-3 months and passes through the Straits of Malacca, which is an area rife with piracy and which could also be shut down by anti-Chinese interests.

Now reconsider Gwadar. It sits just outside the Straits of Hormuz directly in the line of all shipping routes out of the Gulf and, in geographic terms, there is only Pakistan to cross before you reach western China. So China is making Gwadar the centre of one of its largest infrastructure projects in the world.

Over the next 5 years China will invest approximately $46 billion not only in Gwadar port but also in building the China-Pakistan corridor. This latter development is a massive project that will link Gwadar to Kashgar in western China, a distance of over 2,400 kilometres, all of it through Pakistan. The build will include new rail, road, and pipeline infrastructure. It will not only facilitate imports into China but also their exports into the gulf region; it binds Pakistan to its northern neighbour.

The only concern is the USA’s reaction, especially when China leaves a naval warship or submarine parked at their new port. I suppose we cross that (newly built) bridge when we get to it!

 

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Mon, 09/28/2015 - 18:22 | 6604169 donkeyhaute
donkeyhaute's picture

hope they don't have any chemical factories nearby.

Mon, 09/28/2015 - 18:26 | 6604186 kaiserhoff
kaiserhoff's picture

Well, the place is ugly enough to be an oil terminal, BUT,

  Pakistan doesn't really control much of northern "Pakistan", and in any case, Commies hate pipelines,

    or maybe that's just obozo.

Mon, 09/28/2015 - 18:53 | 6604269 nmewn
nmewn's picture

Again, no pipeline through Afgone-e-stawn, no "blood for oil"? Color me fucking shocked...lol...I mean what's the next leftwing meme going to be...have the Pope bless the UN's wet dream of a New World Order?

Oh, wait ;-)

Mon, 09/28/2015 - 19:06 | 6604324 kaiserhoff
kaiserhoff's picture

Was never a fan of Carl Sagan, but this I like,

 "Extraordinary claims, require extraordinary proof."

 

Mon, 09/28/2015 - 19:11 | 6604348 two hoots
two hoots's picture

Congress will never approve this.

Mon, 09/28/2015 - 20:04 | 6604570 Salah
Salah's picture

Doesn't matter, Congress didn't approve the UAE's hidden oil pipeline just across the Gulf of Oman, linking Jebel Ali to Fujairah.

Doesn't anyone at ZH do any real traveling?

Tue, 09/29/2015 - 02:57 | 6605546 Urban Redneck
Urban Redneck's picture

Probably not, or they might have visited the frontier provinces of Pakistan, where the only measurable and consistent economic development comes from Saudi financing of education and other basic services.  The Eton educated Taliban are the exception to the rule.  

On a slightly longer timeline... the Chinese land bridge is the culmination of an E-W battle, and string of Foggy Bottom failures that has been going on for decades ... the GUSA pipeline, the Enron gas plants for Pakistan, the US withdrawal from Pakistan after the Soviet withdrawal from Pakistan.

Barack Obama's foreign policy isn't "don't do stupid stuff" it's Lancelot Link brought to life.

Tue, 09/29/2015 - 03:21 | 6605562 HowdyDoody
HowdyDoody's picture

Betting its energy future on Qwadar?

Not really, it maybe seeking a backup for the 30 ear gas deal with RUssia. It may also be seeking to place protective resources in the Gulf region to deter AngloZionists from committing more acts of stupidity. Since it is not allowed to buy assets 9e.g port)in the US it has to find other ways to dispose of excess toxic assets.

 

Tue, 09/29/2015 - 04:01 | 6605586 Urban Redneck
Urban Redneck's picture

I didn't imply that, and this is bigger than that... 

For how many centuries has the global hegemon and world reserve currency issuer been seeking to influence and control the crossroads that is Central Asia?

Those four examples I cited weren't random or isolated, but they were strategic milestones, moreso than other fuckups that might get more attention in certain (MIC) circles, such as Clinton's F-16 clusterflock. 

 

Mon, 09/28/2015 - 19:26 | 6604414 Herd Redirectio...
Herd Redirection Committee's picture

You have got to love how the whole "Free Tibet" thing was just a sham by American/British/NWO elitists to put pressure on China.

I guess the West threatens to sponsor the Uighurs these days.

BTW, how did Oman own Gwadar, which is geographically part of Pakistan?    Sounds like there is more to that story...  I wonder if British colonialism is possibly involved?  Nah, probably not.

Mon, 09/28/2015 - 19:50 | 6604516 Herd Redirectio...
Herd Redirection Committee's picture

And on further reading, how right I was, at least regarding British involvement in Oman, and Gwadar!

Mon, 09/28/2015 - 19:52 | 6604523 YuShun
YuShun's picture

Getting an update on Gwadar is good, but the second-shift, assistant Tyler who wrote the headline,  and uses the phrase “the critical hub” in the introductory sentences, does not seem to know that two major pipelines are being built between Russia and China.

Mon, 09/28/2015 - 20:50 | 6604787 Mark Urbo
Mark Urbo's picture

No way that pipeline stays online...

 

..another bad China decision.

Mon, 09/28/2015 - 18:32 | 6604209 junction
junction's picture

When finished, one more target for the NWO's Rod of God.

Tue, 09/29/2015 - 01:35 | 6605476 roddy6667
roddy6667's picture

You talk like their would be no retribution. Those days are long over.

Mon, 09/28/2015 - 22:44 | 6605183 sam i am
sam i am's picture

 

Q&A with a Chinese Friend – a full length discussion of Chinese-Russian relations is out in 3 languages!

 

http://thesaker.is/qa-with-a-chinese-friend-a-full-length-discussion-of-chinese-russian-relations-is-out-in-3-languages/

Mon, 09/28/2015 - 18:24 | 6604178 johngaltfla
johngaltfla's picture

I thought it was going to be Basra since the ChiComs will be sending troops to Iraq for "peacekeeping" purposes anyways.

Mon, 09/28/2015 - 18:29 | 6604197 decon
decon's picture

Wow, a port in a Muslim country with a pipeline through the most tortured real estate in the world peopled by tribes that have never been subdued.  What could go wrong?

Mon, 09/28/2015 - 18:32 | 6604208 kaiserhoff
kaiserhoff's picture

Good thing the stuff doesn't burn;)

Mon, 09/28/2015 - 18:49 | 6604247 knukles
knukles's picture

Actually, Muzzies start burning at about 400 C.

Mon, 09/28/2015 - 18:52 | 6604266 kaiserhoff
kaiserhoff's picture

Napalm uber alles.

Mon, 09/28/2015 - 23:33 | 6605300 l8apex
l8apex's picture

400 C?  cmon, give it to us in F

Mon, 09/28/2015 - 18:51 | 6604262 CheapBastard
CheapBastard's picture

China's smart; they will buy them off instead of trillions fighting them and then lose.

Mon, 09/28/2015 - 19:02 | 6604301 kaiserhoff
kaiserhoff's picture

Sometimes, but for the last few thousand years, China's "border" was no where near what is now Pakistan.

  The rapes of Tibet and Nepal and Kashmir, are relatively recent crimes against humanity.

Mon, 09/28/2015 - 20:42 | 6604755 Motasaurus
Motasaurus's picture

Only in the Western world could the overthrow of psychologically torturing overlords who create a caste culture whereby their religion legitimises all abuses of everyone not a part of the top caste be called a "rape". 

Mon, 09/28/2015 - 18:31 | 6604198 macholatte
macholatte's picture

Fundamental Transformation

Change YOU Can Believe In

 

If you like your oil terminal, you can keep your oil terminal.

 

 

 

 

 

Mon, 09/28/2015 - 20:43 | 6604762 Motasaurus
Motasaurus's picture

You didn't build that terminal.

Mon, 09/28/2015 - 18:34 | 6604204 Winston Smith 2009
Winston Smith 2009's picture

They'd better bury that pipeline DEEP. I wish the Communist Dictatorship of China the best of luck (NOT):

Pakistan's Most Dangerous Place

Pakistan’s remote and poorly understood tribal region has emerged as key to the future of both Pakistan and Afghanistan.

As the United States struggles to broker an endgame to the decade-old war in Afghanistan, an arid mountain region in northwestern Pakistan not much larger than Vermont has emerged as the key to the beleaguered Afghan state’s future—and perhaps Pakistan’s as well. Often described as the most dangerous place on earth, Pakistan’s semiautonomous tribal region serves as a haven for Al Qaeda operatives, Pakistani militants, and jihadists from across the Islamic world, as well as Muslim radicals from the United States and Europe who come for ideological instruction and to plot terrorist attacks in their home countries.

http://archive.wilsonquarterly.com/essays/pakistans-most-dangerous-place

Mon, 09/28/2015 - 19:10 | 6604339 lesamourai
lesamourai's picture

The difference is that China probably won't be arming and supporting those jihadis to make attacks.  They'll just aim to buy them off or wipe them out on a case by case basis.

Mon, 09/28/2015 - 20:21 | 6604634 Winston Smith 2009
Winston Smith 2009's picture

Uh, I don't know about that.

True religious fanatics willing to blow themselves up for martyrdom and those 72 virgins usually can't be bought. That's been our problem... the "usual methods" don't work, don't last, or eventually cause major blowback. The Sunnis in the Anbar Province of Iraq stopped killing US troops for, what, $300/month each, and then helped kill AQ forces because they were sick of them. The so-called “Anbar Awakening.” But once we left, the Sunnis of Iraq once again came up with other, less peaceful goals as religious fanatics often do.

Chinese meddling would probably result in the same. Paying off (IF that would even be possible) an extremely radical area of Pakistan might result in that money eventually being used in an attempt to overthrow or, at least, destabilize the "insufficiently radical" (in their "minds") nuclear armed government of Pakistan. I don't think the Pakistani gov't would appreciate China causing that nor would the US. Believe it or not, the US has a MUTUAL DEFENSE treaty with PAKISTAN!

If massive violence was used to subdue rather than bribes, China would probably end up with a "much, much more than just a border with Mexico" type of "illegal alien" problem. Plenty of Chinese to blow up, ya' know, not that the scumbag Chinese government would care, but such events would make their 1.3 billion proles angry and not just at the religious fanatics. It would be a very interesting change of pace to see their meddling getting them in trouble rather than the usual US meddling giving us problems.

Mon, 09/28/2015 - 20:45 | 6604768 Motasaurus
Motasaurus's picture

I'm pretty sure that all China has to do is not drone their weddings and they'll already be miles ahead of the U.S.

Mon, 09/28/2015 - 23:28 | 6605287 uhland62
uhland62's picture

They don't get the virgins if killed by a woman. If I know that, the Chinese know it, too. I think they'll buy them all off, which has been done elsewhere for decades.

Now I must whip myself into a frenzy, on this 2015 September day, because of these plans drawn up in 2007. Outrageous! If these tribes down there near Gwadar become a little more self-sufficient and no longer need aid, the world power structure is falling apart. Outrageous!

Tue, 09/29/2015 - 01:30 | 6605465 roddy6667
roddy6667's picture

It's cheaper to give them enough money to buy 72 virgins now without having to die. Everybody wins. America never understood that part.

Tue, 09/29/2015 - 06:27 | 6605659 Faeriedust
Faeriedust's picture

Pipeline smartly avoids Waziristan.

Of course, they wouldn't have a problem with the region if they hadn't deliberately drone-killed the local chieftain who was holding the whole area together about a decade ago.  Another failed state courtesy of American foreign policy.  The Chinese will probably get the whole country fat, prosperous and stable.

 

Mon, 09/28/2015 - 19:01 | 6604298 random999
random999's picture

I thought oil is dead?

Its soon worth only 30$ bbl and dropping cuz noone wants it.. oh wait

Mon, 09/28/2015 - 19:13 | 6604351 Dominus Ludificatio
Dominus Ludificatio's picture

China is always thinking of the its future and always having multiple plans for insurance.Money well spent.Building is always better than destroying.

Mon, 09/28/2015 - 19:59 | 6604549 NoWayJose
NoWayJose's picture

Not only does China get a secure route to move oil, but it also gets a nice Indian Ocean port for its expanding navy.

Mon, 09/28/2015 - 20:09 | 6604581 Able Ape
Able Ape's picture

Ha! The US is building high-speed rail [LA to San Fran] in CA.  Probably 5-6X the cost of this corridor.  The US of A just can't get its head out of its ass!  Oh, I see... the reason is so the unemployed have something to do.  Working people tend to stay near their jobs except for 2 weeks out of the year.  And business people are using video conferencing to tie remote business locations together.  So JUS' WHO IN THE FUCK is going to be using this high-speed rail?....

 

 

Tue, 09/29/2015 - 01:33 | 6605474 roddy6667
roddy6667's picture

All the people who use Amtrak will change to the high speed rail. Wait, nobody uses Amtrak. Never mind.

Mon, 09/28/2015 - 21:28 | 6604909 KennyW
KennyW's picture

The shipping time from the UAE to Shanghai via maritime shipping is 2 to 3 weeks.

Mon, 09/28/2015 - 23:16 | 6605270 kaboomnomic
kaboomnomic's picture

Just 46 B$?? That is PEANUTS!!

https://www.treasury.gov/ticdata/Publish/mfh.txt

 

China just throws away that cash and mark on its book "total loss. forget it.."

Tue, 09/29/2015 - 00:09 | 6605370 onmail1
onmail1's picture

China moves up

Pirate America & its thieving euroPeons go down 

Time will tell

Tue, 09/29/2015 - 00:11 | 6605375 JoJoJo
JoJoJo's picture

 "The only concern is the USA's reaction"' The president's reaction will likely be, "We will work with China to ensure that the United Staes will in  no way interfere with China's, or the USSR'S right to manfest destiny, and may thir empires extend from Eastern Europe through Western Europe, and across the United States. After all, it is their turn and I have a pen and a phone."

Tue, 09/29/2015 - 01:06 | 6605441 Barrack Chavez
Barrack Chavez's picture

Meanwhile, as part of his "Pacific Pivot", Obama decided to launch coups in Ukraine and Syria.

Someone get Obama a globe, and explain to him how to use it.

For past Harvard Law Review editors only:
Question #1: what ocean is nowhere near Ukraine or Syria?

Question #2: when shipping weapons from Benghazi to "moderate" extremists in Syria, what enormous body of water will NOT be visible at any point in the trip?

Tue, 09/29/2015 - 02:02 | 6605506 researchfix
researchfix's picture

Well, the North Atlantic on both counts.

Tue, 09/29/2015 - 03:11 | 6605554 Barrack Chavez
Barrack Chavez's picture

In your alternate "reality", is "North Atlantic" in the Pacific?

Wed, 09/30/2015 - 05:54 | 6609875 researchfix
researchfix's picture

Look, I like to make jokes. And if you think about it, there are two correct answers, one of which i gave.

Tue, 09/29/2015 - 08:16 | 6605856 Hannibal
Hannibal's picture

As the US is bombing countries, China is building,.....

Tue, 09/29/2015 - 11:33 | 6606444 webmatex
webmatex's picture

Making friends and investments with your neighbours is a better strategy than indiscriminate drone and air strikes against people you will never know or meet.

U.S. chaos wasted trillions in middle east now china's trillions will help M.E. rebuild.

Peace is a win win for Eurasia and the deathnell for the U.S. neocons.

U.S. is fast becoming marginalised happily.

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