OREANDA-NEWS. July 09, 2013. Myanmar will profit from the Myanmar-China gas pipeline project, according to sources from China National Petroleum Corporation (CNPC).

The gas pipeline, expected to start test trials in July, is expected to deliver 22 million tonnes of crude oil and 12 billion cubic meters of natural gas each year. China is currently building process stations and a harbour to deliver the gas and oil, part of which will help Myanmar meet its growing energy demands.

"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 meters of natural gas per year and construct six process stations. We will give 2 million tons of crude oil and 2 billion cubic meters of natural gas to Myanmar every year,” said Mr. Zhang, Deputy Director of the South East Asia Oil Pipeline.

The gas pipeline’s offloading points are Kyauk Phyu, Yay Nan Chaung, Taung Thar and Mandalay. Saku Township is the pipeline’s offloading point for crude oil.

The twin gas and oil pipeline will start test trials in July and final construction is due to be completed in September. According to an estimate from the Ministry of Energy, Myanmar needs 590 million mmfcd (cubic feet per day) of natural gas and 60,000 barrels of crude oil daily to meet domestic demand.

At present, Myanmar only produces 240 million mmfcd of natural gas and 20,000 barrels daily. Myanmar has difficulty to producing electricity for 75 per cent of the population and the industrial zones usually have electricity for four or five hours a day.

Htin Aung, Deputy Minister said that Myanmar needs to reform its energy sector if it is to meet growing domestic demand. China is expected to pay Myanmar US\\$22 million annually in transit fees for the use of pipeline.