June 4 -- Construction on the oil and gas pipeline between China and Myanmar commenced on June 3, reports yicai.com, citing a press release by China National Petroleum Corporation (CNPC), the parent company of PetroChina (601857, 0857.HK).
CNPC and Myanmar Oil and Gas Enterprises (MOGE) signed a protocol which clarified that CNPC Southeast Asia Oil Pipeline, a subsidiary of CNPC, will be in charge of the design, construction, operation and maintenance of the cross-border oil and gas pipeline.
The gas pipeline and oil pipeline will originate from Kyaukpyu in Myanmar. The gas pipeline will cover a length of 793 kilometers within the borders of Mynamar while the oil pipeline will cover a length of 771 kilometers. A crude oil terminal will be built in Kyaukpyu.
CNPC and the government of Myanmar had reached an agreement on this project last June. The Sino-Myanmar oil and gas pipeline could ease China’s dependence on the Straits of Malacca and lower the risks associated with the shipping of crude oil.
The designed capacity of the China-Myanmar oil pipeline is 20 million tons per year, equivalent to 400,000 barrels per day.
According to Myanmar's Ministry of Commerce, proven reserves of natural gas in Myanmar totals 2.54 trillion cubic meters. Annual production of natural gas exceeds eight billion cubic meters, of which five billion cubic meters are exported.
Crude oil reserves totals 3.2 billion barrels with annual production volume of more than 40 million barrels.
Source:http://www.capitalvue.com/home/CE-news/inset/@10063/post/1194208
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