According to a recent report by the Shwe Gas Movement, Myanmar will get US$ 900 million (S$ 1.2 billion) a year from the Myanmar-China natural gas pipeline.
The twin Shwe oil and gas pipelines was built by the China state-owned National Petroleum Corporation (CNPC) export natural gas and crude oil from Myanmar to China. At present, only the natural gas has been in operation while the crude oil pipeline is to be complete by the end of this year. The pipeline is 793 kilometres long and started operations on May 30.
The Myanmar government has announced it will receive a yearly amount of US$ 1.8 billion (S$ 2.2 billion) , for a period of 30 years altogether the government will obtain US$ 54 billion (S$ 67 billion) according to the Shwe Gas Movement.
Moreover, Myanmar will also get 16 per cent as value added tax from crude oil pipeline that will export 22 million tons of crude oil to China.
CNPC has signed a Memorandum of Understanding (MOU) with the Ministry of Energy in 2008 to buy natural gas from offshore Rakhine State. Shwe oil and natural gas pipelines start near Kyaukphyu, and run through Mandalay, Lashio, and Muse before entering China at the border city of Ruili in Yunnan province.
The pipelines pass areas where conflict is still prevalent between the Myanmar army and ethnic armed groups.