Myanmar exports 2m tonnes of oil via pipeline over 4 months

OVER 2 million tonnes of crude oil has been exported to China through the Myanmar-China pipeline, according to U Toe Aung Myint, permanent secretary of the Ministry of Commerce (MOC).

The pipeline connecting Made Island in Rakhine State to Kunming, capital of China’s Yunnan Probince was inaugurated on May 2, 2017. By September 1, the export volume exceeded 2 million tonnes, according to MOC’s statistics.

The project flourished in the framework of the oil export agreement, signed during President U Htin Kyaw’s visit to China in April this year. The pipeline amounted to US$2.45 billion, with 51 percent ownership to China National Petroleum Corporation (CNPC) and 49pc by state-owned Myanmar Oil and Gas Enterprise (MOGE).

CNPC’s subsidiary, South East Asia Crude Oil Pipeline Company (SEAOP), is currently operating the oil jetty on Made Island.

Yearly contractual delivery amounts to 12 million tonnes upon completion of the first phase and 22 million tonnes for the second phase. Moreover, domestic utilisation for Myanmar reaches 2 million tonnes a year, SEAOP’s press release stated.

In return for its export, Myanmar will collect a Right-Of-Way (ROW) exceeding $13 million a year along with two custom duties. The exact amount for the latter is still to be calculated, said Li Zilin, SEAOP’s Vice President, at a press conference in May.

ROW refers a type of easement granted or reserved over the land for the oil and gas pipeline.

The Myanmar-China crude oil pipeline originates in Rakhine and runs on 771 kilometres through four regions and states in Myanmar until it reaches Yunnan via Ruili.

The pipeline contract is set for a 30-year term.

Source : Myanmar Times