China National Petroleum Corp (CNPC), the country's largest oil and gas producer, commenced construction of an oil port in Myanmar on Oct 31, the company said yesterday on its website. This is part of a move to bypass the congested Malacca Straits and diversify China's oil import channels.

The port on Maday Island, Kyaukphyu township in Myanmar's Rakhine state, is the starting point for the 771-km pipeline that will go through Yunnan province.

In the first phase, the pipeline is expected to have a capacity of 12 million tons per year, the company said. The completed pipeline is expected to carry 22 million tons of crude oil annually, according to an earlier agreement between CNPC and Myanmar.