China’s CNPC delays China-Myanmar gas pipeline start-up

22 May 2013 08:22  [Source: ICIS news]

SINGAPORE (ICIS)--China National Petroleum Corp (CNPC) is expected to delay the start-up of the China-Myanmar gas pipeline to late 2013 from its original plan of late May, a source close to the pipeline operator said on Wednesday.

CNPC previously expects to start operating the Kunming section of the China-Myanmar gas pipeline in Yunnan province on 31 May and to commence operations at the Guizhou section on 31 July.

However, operations are likely to be delayed because of continued clashes between government forces and ethnic militia fighters in Myanmar, the source added.

The delay would increase LNG demand in Yunnan and Guizhou provinces, both in southwest China, as many local gas companies have switched to supply natural gas from coal gas, according to a southwest China-based LNG plant source.

Moreover, many industrial users also have completed the oil/coal-to-gas conversion on their boilers, which will boost gas consumption in southwest China, the source said.

There are only two operational gas liquefaction facilities in Yunnan, with a combined daily LNG output of 120,000 cubic metres, according to data compiled by ICIS C1 Energy.

Yunnan also buys LNG volumes from Sichuan province, southwest China, via truck delivery and Guizhou purchases truck-delivered volumes from northern regions, the data showed.

The China-Myanmar gas pipeline, currently under construction, is designed with an annual transport capacity of 12 billion cubic metres and will introduce Myanmar-origin natural gas to China through the entry to southwest China.

By: Ricki Wang
+65 6780 4359

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