Monday 17 June 2013

Myanmar-China pipeline to begin operations next month

The Myanmar-China Shwe pipeline project is ready to begin exporting gas to China as of early July according to officials with the Ministry of Energy.

"The export of gas has been delayed by about three months due to delays in the construction of Chinese gas pipeline," said Htay Aung, an official with the Ministry of Energy.


“We are ready to sell the gas in coming month. But we don’t know exactly the date. We have a plan to hold the opening ceremony,” he added.

The Myanmar-China oil and gas pipelines run parallel to the coastal township of Kyaukphyu, travelling up through Magway, Mandalay, and finally Shan state before entering China's Yunnan providence through the border town of Ruili.

The gas pipeline is 793 km long and the oil pipeline is 771 km long. Myanmar aims to transport 22 million tonnes of crude oil and 2 billion cubic meters of natural gas per year from the Shwe project to China.

The gas pipeline will carry a capacity of 5.2 billion cubic feet of natural gas per year during the initial period and up to 12 billion cubic meters in later years. Six process stations will also be built along the pipeline.

The pipelines will operate for 30 years with the government receiving US$13.81 million per year in royalties, according to the South-East Asia Crude Oil Pipeline Company Limited (SEAOP) and South-East Asia Gas Pipeline Company Limited (SEAGP).

However, Myanmar will only receive US$6.095 million annually for the right of passage and an oil transit fee of US$1 per ton of export crude for 22 million tonnes a year, according to Minister of Energy Than Htay.

source: Eleven Myanmar

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