3 Nov 2009 11:38

CNPC begins building port for China-Myanmar pipeline

Shanghai. November. 3 INTERFAX-CHINA - China National Petroleum Corp. (CNPC), China's largest crude oil producer, began port construction for its China-Myanmar oil pipeline project on Oct. 31 on Maday Island, in Myanmar's Western coastal state of Rakhine, according to a Nov. 3 CNPC Web announcement.

According to the announcement, the pipeline will originate on Maday Island and enter China through Ruili City, Yunnan Province. The 771-kilometer pipeline will have the capacity to transmit 12 million tons of crude oil from Myanmar to China annually in the first phase of development.

The two countries reached an agreement in March on the construction of both a crude oil pipeline and a natural gas pipeline, signing a memorandum of understanding on the crude oil pipeline project in June.

According to a June CNPC announcement, the crude oil pipeline will have a total annual transmission capacity of 22 million tons when completed.

The two countries have yet to begin constructing the gas pipeline, which will transmit an estimated 12 billion cubic meters of natural gas from Myanmar to China annually.

South Korea's Chosun Ilbo reported on Nov. 3 that Hyundai Heavy Industries has been chosen to build the gas pipeline, which is projected to commence operations in 2013.