China National Petroleum Corp said in its Oilnews publication that it and the Myanmar Oil & Gas Co have launched a feasibility study on building a gas pipeline from Myanmar to Kunming, the capital of Yunnan province.

CNPC is the parent of PetroChina Co Ltd ( HK 0857 ), Oilnews also quoted Han Jingkuan, vice president of the PetroChina Planning & Engineering Institute, as saying that the two firms are also looking at building a crude oil pipeline on the same route. Han further noted that China may build a refinery near Kunming to process crude oil piped from Myanmar.

He did not elaborate. Earlier this month, CNPC signed production sharing contracts with Myanmar’s Ministry of Energy covering crude oil and natural gas exploration projects in three deep-sea blocks off western Myanmar. Myanmar has proven recoverable reserves of 510 bln cubic meters of natural gas and 3.2 bln barrels of crude oil, the official Xinhua news agency previously reported.