A new 771-km crude oil pipeline between Myanmar and China has started trial operation. The project, developed by a joint venture of Chinese oil group CNPC (50.9%) and Myanmar’s state-owned Oil and Gas Enterprise (MOGE, 49.1%), has a transport capacity of 22 Mt/year. Construction had started in June 2010 and was completed in May 2014. The pipeline will reduce China's reliance on oil transported through the Straits of Malacca, bypassing countries having territorial disputes in the South China Sea (Malaysia, Brunei, Vietnam and the Philippines); however 80% of China's oil imports will continue to use that route.
In October 2013, a new 12 bcm/year gas pipeline was commissioned between Kyaukpyu (Myanmar) and Guigang (Guizhou, China). The gas pipeline was also developed by the China National Petroleum Corporation (CNPC). A first 12 bcm/year gas line between the Shwe gas fields offshore Myanmar and Kunming in Yunnan (China) had been commissioned in July 2013.