CNPC has initiated the construction of its Myanmar-China gas pipeline in the southern province of Yunnan. The Myanmar-China Pipeline Project consists of a crude oil pipeline and a natural gas pipeline. The oil pipeline is jointly invested and built by CNPC and Myanmar Oil and Gas Enterprise (MOGE). The gas pipeline is jointly invested and built by CNPC, MOGE, Daewoo International, KOGAS, IndianOil and GAIL. The oil pipeline starts at Maday Island and the gas pipeline starts at Ramree Island, both in Kyaukphyu, Rakhine State, on the west coast of Myanmar. The two lines will run 771 km and 793 km respectively in parallel through Rakhine State, Magway Region, Mandalay Region and Shan State before entering into China at Ruili, Yunnan Province. The pipelines' Myanmar section started to be built in June 2010, and is expected to become operational in 2013.
CNPC will also invest a total CYu4.6bn (US$737m) in its Yunnan Urban Gas project, which is designed to include 21 branch lines totaling 1,700 km and 13 local gas projects, covering 15 prefectures and cities. Six of the branch lines will be put into operation together with the trunk of the Myanmar-China Gas Pipeline before June 2013. It is estimated that by 2020, the total deliverability of the pipe network in Yunnan will reach 7 bcm.