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Further delays for Myanmar-China pipeline

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World Pipelines,

A key pipeline that would allow overseas crude oil to be imported to China through Myanmar is expected to see further delays due to final import licenses being denied amidst last minute negotiating tensions. While the pipeline awaits the required final approvals, a tanker that is set to deliver crude has been left sitting in open water.

Taking almost 10 years to develop, the US$1.5 billion 770 km (480 mile) oil pipeline was set for startup very soon. However, PetroChina and Myanmar’s government have not yet agreed a deal for the pipeline. Concurrently, PetroChina is yet to obtain permission from Myanmar’s Navy for oil tankers to enter the country’s ports.

While the project was said to be nearing imminent launch, due to the above-mentioned requirements, there is now no exact date for the pipeline’s startup. Once in operational, the pipeline, running between Kyaukphyu in Myanmar’s Rakhine State and China’s Yunnan Province, is expected to supply 260 000 bpd of oil to a refinery in China’s Yunnan Province. It will have an eventual capacity of 400 000 bpd, approximately 5% of China's daily import demand.

A Myanmar government source is reported to have told Reuters that PetroChina was “trying to push to get the permission from the navy to enter Myanmar water.”

The Myanmar-China pipeline is of great importance to China as it would allow landlocked southern Chinese provinces that neighbour Myanmar to have an alternative supply route to imports from the Middle East and Europe, which cross crowded shipping routes.

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Asia pipeline news Crude oil pipeline news Onshore pipeline news


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