Myanmar has proved natural gas reserves of 2,540 billion cubic meters and crude reserves of 3.2 billion barrels. It has an annual output of 40 million barrels of crude and 8 million cubic meters of natural gas, according to public data.

ICIS-C1 Energy said CNPC is building a large refinery with an annual capacity of 10 million tons in Kunming, Yunnan province.

"The crude delivered by the Sino-Myanmar pipeline will very likely be processed in the refinery," said an insider close to the company.

Myanmar Vice-President U Nyan Tun said the pipeline will also unload crude oil to Myanmar, promoting the country's economic development.

"In addition to increasing our country's incomes and improving energy efficiency, the project also creates abundant work opportunities," he said.

Liao Yongyuan, general manager of CNPC, said the project will enhance the two countries' cooperation in the trade and energy sector.

Related story: China's oil demand to slow in 2015, by Du Juan and Lan Lan, China Daily

Oil and gas consumption is expected to see slower growth in China this year, with the falling global crude prices providing an opportunity for more energy sector reforms, experts said on Wednesday.

The country's oil demand will grow 3 percent year-on-year to 534 million metric tons in 2015, according to the think tank of China National Petroleum Corp, the nation's top oil and gas producer. In 2014, oil consumption grew by 3.3 percent to 516 million tons, said a report published by the CNPC Economic and Technology Research Institute.