China-Myanmar Pipeline Begins Operation

The China-Myanmar pipeline has started supplying gas to China, Xinhua reported.

After three years of construction, the gas pipeline (Myanmar section) was completed and underwent test run on May 30. The pipeline is part of a so-called Myanmar-China Oil and Gas Pipeline project. 

China National Petroleum Corporation (CNPC) has a 50.9 percent stake in the project. Two South Korean firms, Daewoo and Korean Gas Corporation, hold 25.04pc and 4.17pc respectively, while two Indian firms – Gas Authority of India Limited and Oil and Natural Gas Corporation – hold 4.17pc and 8.35pc respectively.

The cost of the 793 kilometre pipeline has been estimated at $2.01 billion.

The gas pipeline is designed to transmit up to 12 billion cubic feet of natural gas a year, though it will initially transmit only 5.2 billion in the first phase, Xinhua said..

Myanmar is set to earn revenues of $30 billion over the next 30 years from the project, Myanmar Times said in a separate report.