Myanmar Oil and Gas Pipelines to Chinaဍ

July 16, 2013 by Author

The pipelines through Myanmar will mark the third leg of major overland import routes, and will be capable of supplying 440,000 barrels of oil a day and 12 billion cubic meters of natural gas a year to China's southern Yunnan province.

The gas will come from a new development off the coast of Myanmar, while the oil will be shipped from the Middle East and Africa on tankers.

Today, the tankers transport the oil through the Strait of Malacca to China's coast. But as early as September, they will sail around the southern tip of India and head north into the Bay of Bengal to Myanmar's coastal town of Kyaukpyu, where the oil will be loaded into the new pipeline. The shortcut will reduce China's reliance on the Strait of Malacca route.

Myanmar's Energy Minister Than Htay said in an interview that natural gas will start flowing in June, followed by oil in September, though the Chinese have said oil may not start before year-end.

Exports of natural gas have been a cause for controversy in Myanmar, as it struggles to meet its own growing energy needs. Mr. Than Htay said that in addition to China's regular payments of land rental and transit fees, Myanmar will be able to draw 40,000 barrels of crude oil a day from the new pipeline.

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