China-Myanmar oil pipeline operational in Jan.
- By Chen Boyuan
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E-mail China.org.cn, January 21, 2015
A crude oil pipeline linking southwest China and Myanmar's coastal city of Kyaukpyu is expected to be put into use at the end of this month and will serve as an alternative route for China's crude oil imports from the Middle East.
The pipeline is expected to have an annual capacity of 22 million tons of crude oil. Myanma Oil and Gas Enterprise holds a 49.1 percent stake in the crude oil and 7.37 percent stake in the natural gas carried in the Sino-Myanmar Pipelines.
As per the agreement reached by the Burmese Ministry of Energy and the China National Petroleum Corporation, the Burmese government will collect US$13.6 million worth of toll fee in addition to US$1 for per ton of crude oil imports crossing Myanmar.
The pipelines, which stretch 771 kilometers in Myanmar, are a new strategic channel for China's energy imports. The construction of the pipelines began in 2010, and the natural gas pipeline became operational in late September 2013. Burmese energy officials said that the crude oil pipeline failed to become operational at the same time because an accompanying deep sea port was still under construction.
A spokesperson for CNPC said on Monday that a supporting refinery is 60 percent complete and will become operational later this year.
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