China is all set to commence the construction of its 1,100-km long parallel gas and oil pipelines to Myanmar in September this year. The project is expected to reduce transportation cost by shortening the journey of up to 20 million tons of crude oil from the Middle East and Africa. Compared to the traditional shipping route, the pipeline is set to reduce the distance travelled by crude oil by 1,200 km. Moreover, it will negate China’s reliance on the Straits of Malacca for oil imports. The natural gas pipeline would be further extended by 1,700 km to transport 12 billion cubic metres of gas into China’s mainland.  Although the project will be developed under the brand name China National Petroleum Corporation (CNPC), it is still uncertain as to whether it will be constructed by CNPC or PetroChina. The pipeline is expected to commence at Kyaukryu port on the west coast of Myanmar and enter China at Ruili in China’s Yunnan province. |
