According to industry sources in China, the startup of PetroChina's new 260K-b/d refinery at Anning, Yunnan province has been delayed due to a dispute with Myanmar. The refinery was built to process crude to be transported through a new 440K-b/d pipeline from Kyauk Phyu, Myanmar, built by PetroChina's parent CNPC's in cooperation with Myanmar Oil and Gas Enterprise. The plan was that the line would decrease the vulnerability of China's supply lines, as currendy about 80% of China's imports pass through the choke point of the Malacca Strait. Now it appears that Myanmar wants a bigger piece of the pie. "The Myanmar government is asking for an additional 5% tax for the crude oil, which is on top of an agreed transit fee and pipeline tariff," said one of the sources. "It is quite off the international norm. The refinery will certainly run into losses if this tax applies."
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