China and Myanmar Join Hands to Build Oil and Gas Pipeline     

On June 3rd, construction of the China-Myanmar Oil and Gas Pipeline project was officially started.
   China's CNPC (China National Petroleum Corp) signed agreements with Myanmar's Myint Hta under which both sides will form a joint venture Southeast Asia Oil Pipeline Co. to design, construct, operate, expand and maintain the oil and gas pipeline.
   The dual pipeline in Myanmar section has 793 kilometers long for gas and 771 kilometers long for crude oil, starting from Myanmar's Kyaukryu and entering China's Ruili, Yunnan province before ending at Kunming, capital of Yunnan province. An oil terminal is seated on the west coast of Myanmar's Kyaukryu.
   The China-Myanmar Oil Pipeline is designed to have a transmitting capacity of 22 million tons of oil per year while the Gas Pipeline passing the two countries has a transmitting capacity of 12 billion cubic meters per year. The two oil and gas pipelines are estimated to cost US$2 billion. CNPC holds a 50.9% stake in the joint venture project.
   The China-Myanmar Oil and Gas Pipeline is China's third energy channel sourcing oversea following northwest reach from Kazakhstan and northeast region from Russia.