Project Profile
Value: US$2.45 billion
Location: Kyaukphyu (Sittwe) in the Bay of Bengal with Kunming in Yunnan province of China
Length: 770 km (oil pipeline), 2,806 km (gas pipeline)
Capacity: Oil – 440,000 bpd, Gas – 12 bcm
Construction completed: 2014
Start-up year: Gas – October 2014, Oil – April 2017
The China-Myanmar pipeline links Myanmar’s deepwater port of Kyaukphyu in the Bay of Bengal with Kunming in China’s Yunnan Province. Talks between China and Myanmar on the feasibility of the project began in 2004. In December 2005, PetroChina signed a deal with the Myanmar government to purchase natural gas over a 30 year period.
The plan to build the oil and gas pipelines was approved by China’s National Development and Reform Commission in April 2007. In November 2008, China and Myanmar agreed to build a US$1.5 billion oil pipeline and US$1.04 billion natural gas pipeline. In March 2009, the two countries signed an agreement to build a natural gas pipeline, and in June 2009 an agreement to build a crude oil pipeline. The inauguration ceremony marking the start of construction was held on 31 October 2009 on Maday Island.
The oil and natural gas pipelines run in parallel and start near Kyaukphyu, run through Mandalay, Lashio, and Muse in Myanmar before entering China at the border city of Ruili in Yunnan Province.
The oil pipeline transports crude to a new PetroChina refinery in Yunnan province that will produce high quality gasoline and diesel. The refinery has a 260,000 bpd capacity and is designed to process sour crude from the Middle East.
The oil pipeline, which eventually terminates in Kunming, capital of Yunnan province, is 770-km long. The natural gas pipeline extends further from Kunming to Guizhou and Guangxi in China, running a total of 2,806 km.
The oil pipeline has a capacity of 22 million tpy (440,000 bpd) of crude oil. The gas pipeline can pump 12 bcm per year.
Operators:
China National Petroleum Corporation (CNPC): Operator with 50.9% interest
Myanma Oil and Gas Enterprise (MOGE): 49.1% interest