The Yunnan Information Daily said the local branch company of the China National Petroleum Corporation (CNPC) had already drawn up environmental impact assessments for a network of three product oil pipelines connecting the provincial capital, Kunming, with the cities of Anning, Quqing, Chuxiong, Dali, Yuxi and Baoshan.
Citing a local company official, the report said construction of the pipelines was likely to begin next year and be completed within three years.
CNPC is also building a 200,000 bpd refinery in the city of Anning that is designed to process crude delivered via Burma. It will be completed within three years.
It is also building 16 oil storage facilities throughout Yunnan, the report said.
CNPC began building an oil port on Maday Island on Burma's western coast in November 2009 and it launched the construction of an oil pipeline connecting the port with the Chinese border town of Ruili in June this year.
The pipeline, scheduled to be completed in 2012, is designed to carry 12 million tonnes of crude a year into China.
The project is part of China's efforts to diversify its sources of supply as well as to bypass the congested Malacca Strait, a vulnerable chokepoint between Malaysia and Indonesia through which about 80% of China's imports now pass.
Another pipeline delivering 12 billion cubic metres of natural gas will also be built.