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CNPC To Kick Off Sino-Myanmar Oil, Gas Pipelines' Construction In September 2009

EBR Staff Writer Published 16 June 2009

China National Petroleum Corporation (CNPC), the parent of PetroChina Company Limited, will begin the construction of Sino-Myanmar oil and gas pipelines in September 2009, China Securities News reported. The Sino-Myanmar oil pipeline will be 1,100 kilometers long. It would connect Myanmar with Kunming, capital city of southwest China's Yunnan area and duly produce crude oil from the Middle East and Africa.

Myanmar would set up a 300,000-dwt crude port and an oil tank with a storage capacity of 600,000 cubic meters.

The natural gas pipeline is 2,806 kilometers long and has a yearly transportation volume of 1.2 billion cubic meters. It is considered to produce West Sea natural gas of Myanmar to China's Yunnan and Guizhou areas.

The gas pipeline is likely to produce its first unit of gas to Kunming city in 2012 and the supplying price (CIF price) would not go above 3.5 yuan per cubic meter, the sources disclosed.

The price is actually more than the terminal price of CNY1.1 per cubic meter in Kunming, which led to the market into speculations over natural gas pricing reform.

The company will receive Turkmen gas in 2010 to supply its East-to-West gas pipeline, but the import CIF price has overrun the supply price to particular Chinese cities, calling for an urgent gas pricing change.

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