Myanmar-China natural gas pipeline commences operations

The Myanmar-China natural gas pipeline has been launched and has commenced operations in Mandalay, northern Myanmar, delivering gas to China.

The 870km pipeline will supply natural gas and petroleum from the coastal port in Myanmar to Southwest Yunnan Province in China.

Six companies from four countries have partnered in the pipeline project, which is designed to hold around 22 million tonnes of oil and 12 billion cubic metres of gas.

Myanmar will import petroleum and gas from the Middle East and supply it to China through the new pipeline.

The pipeline is expected to bring approximately $1.5bn to Myanmar and will meet around a quarter of China’s natural gas demand.

Around two million tonnes of crude oil and 20% of the projected throughput of gas will be offloaded in Myanmar.

Two joint ventures, South-East Asia Crude Oil Pipeline (SEAOP) and South-East Asia Gas Pipeline (SEAGP), have been registered to collect investment from all parties.

The SEAOP includes China National Petroleum (CNPC) and Myanmar Oil and Gas Enterprise (MOGE). Along with CNPC and MOGE, the SEAGP is composed of South Korea’s Daewoo and KOGAS and OCEBV and GAIL from India.

The pipeline passes through the Malacca Strait, reducing the distance of gas transportation.