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The construction of the Myanmar-China Oil and Gas Pipelines was originally proposed in 2004. Important progress was made in 2009. We signed a series of agreements on constructing, operating and managing the Myanmar-China Oil and Gas Pipelines in 2009-2010, which clarified the JV’s rights and obligations. According to the agreement, Southeast Asia Pipeline Ltd., our subsidiary, will be JV’s holding stockholder responsible for designing, constructing, operating and maintaining the oil and gas pipelines. Construction of the Myanmar’s section and Chinese section of the Myanmar-China Oil and Gas Pipelines began in June and September, 2010, respectively. The project is due to be completed and became operational in 2013. Both pipelines will start from Myanmar's Kyaukryu and enter China at Ruili in Yunnan Province. The gas pipeline will extend across Yunnan, Guizhou, Chongqing, and Guangxi. The oil pipeline is designed to transport 22 million tons of oil per year, and the gas pipeline is designed to transport 10-13 billion cubic meters of gas per year. An oil terminal was built on the west coast of Myanmar's Kyaukryu at the same time.
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