China has concluded a deal with the ruling junta in Burma on building a 1,440 km-long pipeline across the Burmese territory. The new pipeline will deliver gas and oil to China possibly starting this year.

At the same time, China secured a deal to explore three large offshore gas fields, The Daily Telegraph writes. Building a pipeline across Burma will help drastically cut down on shipping costs.

The gas delivered to China will come from one of the largest deposits ever found in Burma. Competition for Burma's natural resources has been tough, with India and South Korea also vying for the right to exploit the huge gas deposits.

The planned pipeline will start from Kyaukphyu on Ramree island and end in Kunming in south western China.

According to Daily Telegraph, Burma could make an estimated 11.4 billion euros over the next 20 years from gas exports from each of the three offshore blocks.