China to build Myanmar oil, gas lines from Sept.: report

The lines will cut delivery time for crude from the Middle East and Africa, the China Securities Journal said, with ships delivering oil that can then be pumped overland, replacing the shipping route via the congested Malacca Strait.

A 1,100-kilometre line capable of delivering 400,000 barrels of crude per day will run from Myanmar's Rakhine state to China's southwestern Yunnan province, the report said.

Meanwhile, a pipeline with an annual transportation capacity of 12 billion cubic metres, will move natural gas to Kunming, capital of Yunnan province in 2012, the report said.

The 2,806-kilometre gas line will also extend to Guizhou province and reach the Guangxi region's capital Nanning city.

'The section in Myanmar will be constructed (by) CNPC, but it has not been decided whether CNPC or PetroChina will undertake the domestic part,' an unnamed CNPC official told the newspaper.

Myanmar ranks tenth in terms of natural gas reserve worldwide. The pipelines will also help China to tap rich energy reserves in the country, the report said.

Myanmar's huge gas reserves and other natural resources are major targets for China and other Asian countries that eschew sanctions imposed by the US and other Western nations on the country formerly known as Burma.

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