Myanmar exports 2m tonnes of oil via pipeline over 4 months
According to U Toe Aung Myint, permanent secretary of the Ministry of Commerce (MOC), over 2 million tonnes of crude oil have been exported to China through the Myanmar – China pipeline within 4 months.
The pipeline originates in Rakhine state and runs for 771 kilometers through four regions and states in Myanmar untl it reaches Yunnan Via Ruili.
The project was signed by President U Htn Kyaw during his visit to China in April this year. The pipeline contract amounts to US$ 2.45 billion, and is set for a 30 – year term with 51% ownership by China Natonal Petroleum Corporaton (CNPC) and the remaining 49% by state owned Myanmar Oil and Gas Enterprise (MOGE). South East Asia Crude Oil Pipeline Company (SEOP), a subsidiary of CNPC, is currently operatng the oil jety on Made Island.
Upon completon of the frst phase, the yearly contractual delivery will amount to 12 million tonnes, and the second phase amountng to 22 million tonnes. Furthermore, its press release stated that Myanmar’s domestic utlizaton reaches 2 million tonnes per annum. Li Zilin, SEAOP’s Vice President, said at a press conference in May that the exact amount for the later is yet to be calculated. In return for its export, Myanmar will collect Right – Of – Way (ROW – a type of easement granted over the land for the oil and gas pipeline) exceeding $113 million a year along with two custom dutes.