China-Myanmar multi-billion Oil & Gas Pipeline project underway

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

Kazakh-Chinese JV up in July for the construction of the Beyneu-Bozoy-Akbulak gas pipeline

A Kazakh-Chinese JV will be set up in July to build the Beyneu-Bozoy-Akbulak gas pipeline, KazMunaiGas Managing Director of gas projects Bolat Nazrov said. ”A JV will be set up in July. It will be engaged in building the Beyneu-Bozoy-Akbulak pipeline”, Nazarov told journalists on the sidelines during “government hour” in the Kazakh senate. He said Kazakhstan would own 50 percent of the project and that the authorised capital would be about $3 billion. He added that $2.5 billion would be attracted from the Chinese side. ”The Chinese national oil company will attract $500 million and a Chinese bank will provide $2 billion under guarantees from Chinese companies. $500 million will come from the Kazakhstan budget”, Nazarov clarified. He said all preparatory work for the gas pipeline project has been accomplished already.

“The technical plan and the route have been finished”, he said. Construction on the pipeline is to begin in the second half of 2010 and be completed in 2012. The Beyneu-Bozoy-Akbulak pipeline will be 1,500 kilometers long and have a capacity of 10 billion cubic meters a year. It will pump gas from western Kazakhstan, including industrial production on the Caspian shelf and southern regions of the country. 

Myanmar’s Yangon faces reduced power supply as old offshore gas pipeline leaks again

Myanmar’s former capital city of Yangon is now facing abnormal reduced electric power supply as an old pipeline that carries natural gas from the Mottama offshore gas field to drive power plants in the city leaked again over last week, the local Weekly Eleven News reported Monday.

The shortage of power intensified as the leakage occurred before a new 24-inch alternative gas pipeline was nearing completion and not ready yet to distribute gas to the commercial city from Insein township’s Ywama where gas control and distribution station is based, the Yangon City Electricity Supplying Board was quoted as saying.

Power supply to private enterprises in Yangon was temporarily stopped in mid-May to divert some of the electricity for Yangon residents’ home use as part of the authorities’ provisional measures to ease power shortage in Yangon.

However, the temporary measures of suspending power supply to the small industrial enterprises were resumed in the last week of May except industrial zones.

Myanmar gets a total of 660 megawatts (mw) produced from hydropower and gas power, of which only 330 mw or 50 percent are supplied to Yangon which actually needs 660 mw, according to the report.

The serious shortage of power has prolonged for over three months, affecting the daily life of Yangon residents.

Source: Xinhua