Tuesday 19 November 2013

Construction of Myanmar-China crude oil pipeline nearly complete

YANGON—More than ninety-six percent of construction is complete for the 771 km-long Myanmar-China crude oil pipeline, which will connect Maday Island in Kyauk Phyu District of Rakhine State to China, exporting 22 million tonnes of crude per year.

According to Mr. Zhang from the public relations department of the South-East Asia Crude Oil Pipeline Company Limited (SEAOP), Myanmar will receive US$ 13.81 million (Ks 13.45 billion) per year in a royalties and an oil transit fee of $US 1 per tonne, according to the SEAOP.

“Ninety-six percent of the construction for the crude oil pipeline has been completed. We will make a statement that the crude oil will be exported to China from the pipeline. The natural gas pipeline is now fully running,” said Mr. Zhang.

The Myanmar-China crude oil pipeline starts from Maday Island and runs through Rakhine State, Magway and Mandalay Regions, and then Shan State, before entering China via Ruli.

The pipeline will send 22 million tonnes of crude oil a day from Myanmar. Five processing stations will be built, with Sagu Township, Magway Region, serving as an offloading point.

“Myanmar has acted as a buffer transit route for oil exports from Middle East countries to China. That’s why a jetty for vessels weighing 300,000 tonnes to dock was built at Maday Island. The oil from Middle East will be brought to the jetty on Maday Island and will then be exported to China through the pipeline,” according to a source at the project site.

The construction of the jetty at Maday Island has been completed, according to the Myanmar Port Authority. The jetty was jointly built by the China National Petroleum Corporation and Myanmar’s Ministry of Energy.

source: Eleven Myanmar

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