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China-Myanmar pipeline delivers gas to China
July 29, 2013, 9:22 am


The project is billed as one of energy-hungry China’s most important strategic investments [Xinhua]

The Myanmar-China $2 billion natural gas pipeline was inaugurated on Sunday in Mandalay and has started delivering gas to China.

A parallel $2.3 billion 770 km oil pipeline is set to be operational in September this year.

South-East Asia Crude Oil Pipeline Co Ltd and South-East Asia Gas Pipeline Co Ltd were established to operate the gas and oil pipelines.

China, India, Myanmar and South Korea have investments in the two companies.

Indian companies, OVL and GAIL have announced $1.33 billion of investment in the China-Myanmar gas pipeline project.

The project is billed as one of energy-hungry China’s most important strategic investments.

The gas pipeline will be able to carry 12 billion cubic metres annually, while the crude oil pipeline has a capacity of 22 million tonnes per year.

Myanmar Vice President U Nyan Tun, China’s Ambassador to Myanmar Yang Houlan and a South Korean representative were present at the inauguration.

Originating from Myanmar’s Kuaykphyu the pipeline passes through Rakhine state, Magway and Mandalay regions and Shan state and enters Chinese territory at Ruili in southwest Yunnan Province.

The gas pipeline stretches for 793 km within Myanmar’s territory and has six processing stations.

Two million tonnes of crude oil and 20 per cent of the designed throughput of gas will be offloaded in Myanmar.

Source: Agencies

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