The start of operations of the Myanmar-China oil pipeline have been delayed and the final import licences have not been granted so far. The facility has been ready for two years but the recent changes in the Myanmar's government and the negotiations process over the contract's terms have delayed shipments so far. Myanmar asked for higher oil transit tax payments and increased port transit fees.
PetroChina and the government of Myanmar are still negotiating and a VLCC (very large crude carrier) stranded off the Sri Lanka coast is blocked, awaiting for docking permission.
The 770 km-long crude oil pipeline between Myanmar and China started operations in 2014. It was developed by a joint venture of Chinese oil group CNPC (50.9%) and Myanmar's state-owned Oil and Gas Enterprise (MOGE, 49.1%), and has a transport capacity of 12 Mt/year (240 bbl/d). The construction costs amounted US$1.5bn. 12 storage tanks with a capacity of 600,000 barrels have been commissioned in February 2015 in Kyaukphyu (Myanmar coast) but they have been standing empty so far.
The pipeline would be a strategic alternative for China, which currently mostly relies on Middle East oil imports via the straits of Malacca. The crude would be piped to a 260,000 bbl/d Chinese refinery located close to Kunming (Yunnan province).