China will start to build oil and gas pipelines through Burma in September to shorten the journey time for crude imports from the Middle East and Africa.
The section of the pipelines in Myanmar (Burma) will be built under the name of China National Petroleum Corporation (CNPC) but it is not clear who will build the domestic section of the pipeline, the China Securities Journal reported.
The construction is most likely to be undertaken by China’s largest oil and gas producer CNPC or PetroChina.
The oil and gas pipelines are expected to help China cut the long journey made by crude cargoes, which now travel through the congested Malacca Strait.
The gas line, with transportation capacity of 12 billion cubic metres per year, is expected to carry natural gas to Kunming, the capital of south-western China’s Yunnan province, which borders Burma, in 2012, according to the report.