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Building of pipelines to start in September

THE construction of pipelines that will transport oil and gas to China via Myanmar will begin in September, an inside source at PetroChina Co said yesterday.

The project will open the fourth route for China's oil and natural gas imports, after ocean shipping, the Sino-Kazakhstan crude oil and natural gas pipelines, and the Sino-Russian oil pipeline, according to the source, who declined to be named.

Under a pact sealed in March between China and Myanmar, the oil and natural gas pipelines will run in parallel. Both will start in Kyaukryu port on the west coast of Myanmar and enter China at the border city of Ruili in Yunnan Province.

The 1,100 kilometer oil pipeline will end in Kunming, capital of the province. It is expected to pipe 20 million tons of crude oil to China from the Middle East and Africa annually.

The natural gas pipeline will extend further from Kunming to Guizhou Province and Guangxi Zhuang Autonomous Region, running a total of 2,806 kilometers. It is expected to transport 12 billion cubic meters of gas to China annually.

The Sino-Myanmar gas pipeline will further increase China's gas imports, which are projected to exceed 100 billion cubic meters over the next few years.

Compared with ocean shipping, the oil pipeline can reduce the transport route by 1,200 kilometers, experts said. It will also reduce China's reliance on the Straits of Malacca for oil imports.


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