The 1,691km pipeline will reach from Maoming City, south China's Guangdong Province, to Kunming, capital of southwest China's Yunnan Province, with construction beginning in September.
Passing through south China's Guangxi Zhuang Autonomous Region and Guizhou Province the line will require 19 pumping stations and will cost 3.52 billion yuan ($US424 million).
The pipeline project will be completed at the end of 2004 and put into use in March 2005.
By then, 10 million tons of processed oil will be piped each year from Guangdong Province to Guangxi, Guizhou and Yunnan.
