Reuters reported that China CNPC started building a crude oil port in Myanmar on October 31st part of a pipeline project aimed at cutting out the long detour oil cargoes take through the congested Malacca Strait.

The reported commencement of construction took place at least a month later than scheduled in earlier plans reported by China's state media.

The report said the port on Maday Island, Kyaukphyu Township in Myanmar Rakhine state was the starting point for the 771-kilometre pipeline that would have a capacity of 12 million tonnes per year or 240,000 barrels per day in its first phase. It did not say when the port facility would be ready for use or when the pipeline would be built.

CNPC also plans a gas pipeline from Myanmar with capacity of 12 billion cubic meters a year scheduled to carry natural gas to southwestern China in 2012.

Myanmar activists have called for China to halt construction of the controversial pipelines, warning of instability and civil unrest if Myanmar's ruling junta continues to starve its people of energy.

CNPC, China largest oil and gas producer, operates most of its domestic businesses through listed PetroChina while keeping politically sensitive overseas businesses in its own hand.

(Sourced from Reuters)