Myanmar: Reporter’s Notebook: Has China’s Pipeline Project Benefited Maday Island Locals?

Jul 18, 2017 | Moe Myint, Irrawaddy
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It has been seven years since construction began on a China National Petroleum Corp (CNPC) pipeline project that cuts 480 miles across Myanmar. The transmission of crude oil from Maday Island to China’s Yunnan Province began on May 2. The pipeline can transport up to 22 million tons of crude oil annually. Myanmar will annually receive a Right of Way fee of US$6.905 million, a pipeline usage fee of $1 per metric ton of crude oil, a crude oil tariff of $31.56 per metric ton and profit shares as per the shareholder agreement. The project is a joint venture between CNPC and the Myanmar Oil and Gas Enterprise (MOGE), holding stakes of 50.95 percent and 49.1 percent, respectively.