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.
source: Eleven Myanmar
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