Myanmar-China gas pipeline ready for trial operations: CNPC

Singapore (Platts)--31May2013/106 am EDT/506 GMT  

The Myanmar-China natural gas pipeline has been completed and is ready for trial operations, and a parallel oil pipeline is 94% complete, state-owned China National Petroleum Corp. said Friday on its website.
The 12 Bcm/year gas pipeline will transport natural gas produced in Myanmar to China's southern province of Yunnan. The 22 million mt/year oil pipeline will allow CNPC to transport some of its imported crude from Africa and the Middle East via Myanmar into China, thereby reducing its reliance on the traditional shipping route through the Straits of Malacca.

CNPC had said in March that the oil pipeline would be ready for commissioning by the end of this year.

South Korea's Daewoo International said last week it expected to start commercial gas sales from the offshore Shwe project in Myanmar to CNPC from July. Daewoo will produce 500,000 Mcf/d of gas from the project, with 400,000 Mcf/d supplied to CNPC via the gas pipeline and the rest consumed in Myanmar.

A CNPC delegation led by general manager Liao Yongyuan was in Myanmar this week to meet with Myanmar's President Thein Sein in Naypidaw. Liao then inspected the pipeline projects in Mandalay, CNPC said.

The twin pipelines start from the western coast of Myanmar and run northeast across Rakhine, Mandalay and Shan states before entering China at Ruili in the western part of Yunnan.

CNPC previously said both pipelines will span a total 7,676 km, of which 1,504 km will run through Myanmar and the remaining length through China. An oil terminal to receive CNPC's crude imports at the western town of Kyaukpyu has already been constructed.

--Song Yen Ling, yenling.song@platts.com

--Edited by Meghan Gordon, meghan.gordon@platts.com

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