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New China-Myanmar Oil Pipeline on Trial Run
Feb 08, 2015

A new 771-km. crude oil pipeline between Myanmar and China has started trial operation. The project, developed by a joint venture of Chinese oil group CNPC (50.9%) and Myanmar’s state-owned Oil and Gas Enterprise (MOGE, 49.1%), has a transport capacity of 22 Mt/year. Construction had started in June 2010 and was completed in May 2014.

  • The pipeline will reduce China's reliance on oil transported through the Straits of Malacca, bypassing countries having territorial disputes in the South China Sea (Malaysia, Brunei, Vietnam and the Philippines); however 80% of China's oil imports will continue to use that route.

  • CNPC and Myanmar's state-run Oil and Gas Enterprise (MOGE), completed the pipeline in late May last year after launching the project in June 2010.

  • China was a key backer of Myanmar's military junta while it was under Western sanctions.

  • Thein Sein regime in Myanmar has increased ties with other countries since launching political reforms in 2011.

  • Myanmar is still a key part of China's bid to diversify its energy imports, however, and reduce its reliance on oil transported through the piracy hub of the Straits of Malacca.

  • China also signed agreements worth $7.8 billion with Myanmar including deals to build power plants fuelled by natural gas.

  • The new oil pipeline will be able to transmit 22 million tonnes of crude a year from Myanmar's Made Island Port.

  • In October 2013, a new 12 bcm/year gas pipeline was commissioned between Kyaukpyu (Myanmar) and Guigang (Guizhou, China).

  • The gas pipeline was also developed by the China National Petroleum Corporation (CNPC).

  • A first 12 bcm/year gas line between the Shwe gas fields offshore Myanmar and Kunming in Yunnan (China) had been commissioned in July 2013.


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