BEIJING, Aug 26 (Reuters) - China is planning three oil product pipelines in the southwestern border province of Yunnan as it prepares to receive crude oil from its neighbour, Myanmar, local reports said on Thursday.
The Yunnan Information Daily said the local branch company of the China National Petroleum Corporation (CNPC) had already drawn up environmental impact assessments for a network of three product oil pipelines connecting the provincial capital, Kunming, with the cities of Anning, Quqing, Chuxiong, Dali, Yuxi and Baoshan.
Citing a local company official, the report said construction of the pipelines was likely to begin next year and be completed within three years.
CNPC, the parent of PetroChina (0857.HK)(601857.SS)(PTR.N), is also building a 200,000 bpd refinery in the city of Anning that is designed to process crude delivered via Myanmar. It will be completed within three years.
It is also building 16 oil storage facilities throughout Yunnan, the report said.
CNPC began building a crude oil port on Maday island on Myanmar’s western coast in November 2009. It launched the construction of a crude oil pipeline connecting the port with the Chinese border town of Ruili in June this year.
The pipeline, scheduled to be completed in 2012, is designed to carry 12 million tonnes of crude oil a year into China.
The project is part of China’s efforts to diversify its sources of supply as well as to bypass the congested Malacca Strait, a vulnerable chokepoint between Malaysia and Indonesia through which about 80 percent of China’s imports now pass.
Another pipeline delivering 12 billion cubic metres of natural gas will also be built.
For a factbox on the China-Myanmar pipelines, click [ID:nTOE60S06Z]
Reporting by David Stanway; Editing by Ken Wills