China-Myanmar Pipeline to Reduce China's Energy Cost

The China-Myanmar oil and gas pipeline will significantly reduce China’s energy import cost overcome the country's dependence on the Strait of Malacca, controlled by the United States, Press Trust of India has reported citing Chinese experts.

"China's energy security will be further guaranteed by the exploration of the new import route through Myanmar, and the energy importing channels will be further diversified," Xu Liping, deputy director of China's Center for South Asian Studies, said. 

Last week, CNPC said that natural gas pipeline was complete and ready for trial operations while the oil pipeline was 94% complete. The pipelines run from the port of Kyaukpyu in Myanmar's west coast into China's Ruili city, Yunnan province. Pipelines will traverse a total distance of 7,676 km, of which 1,504 km will run through Myanmar and the rest through China.

Experts estimate that the pipelines will satisfy a quarter of China's natural gas demand every year, and also bring about $1.5 billion foreign exchange earnings to Myanmar annually, and it is a win-win cooperation between the two countries, Press Trust of India said. 

Xu said that ties between China and Myanmar will be greatly strengthened due to this project, as the two neighbours rely on each other in many aspects.