The China-Myanmar oil and gas pipeline project kicked off over the weekend in the Naypyitaw, the capital of Myanmar.
There are 793 kilometers of gas pipeline in Myanmar, and also a 771-kilometer-long crude oil pipeline. The China National Petroleum Corporation (CNPC) said it has begun building an oil port in Kyaukpyu as a facility for the planned China-Myanmar oil pipeline project.
According to the agreement signed by both countries, the Union of Myanmar is to grant a crude oil pipeline to the Southeast Asia Oil Pipeline Co., Ltd. for the China-Myanmar oil pipeline franchise and is responsible for pipeline construction and operation and so on. The company also enjoys tax breaks, oil transit, import and export customs clearance and related rights such as right-of-way operations.
Relevant chiefs from CNPC said that the project could explore new oil product import channels and further ensure the country’s oil supply security. Meanwhile, the project also could improve the infrastructure construction in China’s southwest area, which is beneficial to implementing the general strategy of the West Development Program.
By People’s Daily Online