Business & IndustryAnalysis

China Launches 18.5-Million-Ton Crude Pipeline in Eastern Energy Grid Expansion

The Lianyungang-Huaian pipeline section links coastal import facilities to key refining hubs along the Yangtze River.

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The Brief

China has commissioned the Lianyungang-Huaian section of the Lianyungang-Yizheng crude oil pipeline, marking the first major crude transport project with a capacity exceeding 10 million metric tons per year to enter operation under the 15th Five-Year Plan period. Built and operated by state-owned PipeChina, the 143.8-kilometer pipeline boasts an annual transmission capacity of 18.5 million tons. It links coastal crude receiving terminals in Lianyungang to the existing Rizhao-Yizheng trunkline, supplying refineries across Jiangsu province and the broader Yangtze River Economic Belt.

Why it matters

The pipeline establishes a high-capacity conduit from deepwater coastal import facilities to inland petrochemical clusters. By enabling daily throughput of up to 70,000 tons, the new link mitigates logistical bottlenecks along the Yangtze River, diversifies crude supply routes for downstream refiners, and reinforces energy supply security across eastern China.

China context

The project represents a core milestone in Beijing's strategy to construct a unified national oil and gas network under PipeChina. Integrating regional pipelines into interconnected grids aims to eliminate commercial barriers between state-owned and private refiners, streamline import distribution, and support the broader industrial upgrade of the Yangtze River Delta.

Editor's View

EDITOR'S VIEW — Analysis and inference, not factual reporting. The commissioning of the Lianyungang-Huaian segment highlights China's continuous structural investments in midstream energy infrastructure. By funneling seaborne crude directly from Lianyungang's Xuwei petrochemical base into the central Yizheng hub, the network enhances flexibility in allocating imported crude grades. This provides regional refineries with greater resilience against river transport constraints and maritime logistics disruptions.

What to watch

  • Ramp-up speeds and utilization rates as crude flows into the Yizheng hub
  • Operational coordination between the new pipeline and the existing Rizhao-Yizheng trunkline
  • Changes in crude sourcing and logistics costs for petrochemical plants in Jiangsu and along the Yangtze River
  • Upcoming pipeline interconnectivity projects scheduled for construction during the 15th Five-Year Plan

Key Takeaways

  • 1The 143.8 km Lianyungang-Huaian pipeline section has officially entered service in Jiangsu province.
  • 2The pipeline has an annual design capacity of 18.5 million metric tons and a maximum daily throughput of 70,000 tons.
  • 3Construction ran from October 2024 to June 2026, traversing 138 km of dense water networks.
  • 4The line links coastal import terminals at Xuwei New Area to the Yizheng crude distribution hub via the Rizhao-Yizheng pipeline.
China has commenced commercial operations on the Lianyungang-Huaian section of the Lianyungang-Yizheng crude oil pipeline, according to state media reports, marking the entry into service of the first crude pipeline exceeding 10 million metric tons in annual capacity under the 15th Five-Year Plan framework. The 143.8-kilometer pipeline originates at the Xuwei New Area initial station in the coastal city of Lianyungang and terminates at the Huaian pumping station on the existing Rizhao-Yizheng pipeline in Jiangsu province. Constructed with an 813-millimeter diameter and designed for an operating pressure of 8.5 megapascals, the link has a rated annual capacity of 18.5 million metric tons, capable of transporting up to 70,000 tons of crude daily. According to People's Daily, construction began in October 2024 and completed mechanical line integration in June 2026. The route traverses complex low-lying plains in eastern China, where water networks—including canals, rivers, and aquaculture ponds—account for over 95% of the right-of-way. In total, the project crossed nine medium-to-large rivers, 14 major roads and railways, and 439 smaller waterways. To overcome soft silt and high water tables, engineering teams deployed automated continuous welding, dewatering techniques, and prefabricated pipe racks. Crucial crossings under the Xinyi and Guan rivers utilized combined horizontal directional drilling and inter-bank tie-ins, completing the line's most challenging bottlenecks ahead of schedule. By connecting directly to the Rizhao-Yizheng pipeline, the new infrastructure feeds into the Yizheng hub—one of eastern China's primary crude distribution centers. The connection is designed to optimize energy allocation for refineries in Jiangsu and along the Yangtze River corridor, offering alternative delivery channels for imported seaborne crude and enhancing midstream system redundancy across the Yangtze River Delta.