||Asean Affairs 28 June 2013
Myanmar to benefit from China gas pipeline
The Myanmar-China gas pipeline joint project will be financially provitable for the two countries, according to officials from the China National Petroleum Corporation (CNPC).
“The project is expected to deliver 22 million tons of crude oil and 12 billion cubic metres of natural gas each year. We are constructing five process stations and a harbour which can deliver 300,000 tons of crude oil annually. Initially we will deliver 5.2 billion cubic metres of natural gas per year and construct six process stations. We will give 2 million tons of crude oil and 2 billion cubic metres of natural gas to Myanmar every year,” said Zhang, deputy director of the South East Asia Oil Pipeline and South East Asia Gas Pipeline.
The gas pipeline’s distribution points are Kyauk Phyu, Yay Nan Chaung, Taung Thar and Mandalay. Saku Township is for crude oil pipeline’s offloading point.
The twin pipeline will be put to a test in July and the construction of pipeline will be expected to complete in September.
According to the estimate of Ministry of Energy, Myanmar needs 590 million mmfcd (cubic feet per day) of natural gas and 60,000 barrels of crude oil daily. At present, Myanmar only produces 240 million mmfcd of natural gas and 20,000 barrels daily.
Myanmar has difficulty in producing electricity for 75 per cent of entire population and the industrial zones usually have electricity 4 or 5 hours per daily.
Htin Aung, Deputy Minister for Energy, said in World Economic Forum on East Asia that Myanmar needs to reform energy sector in pointing out the factors mentioned in above.
China will pay Myanmar US$22 million annually for the use of pipeline as transit fee.