China and Myanmar have finally agreed to open a cross-border pipeline into south-east China, allowing Beijing to diversify oil supply routes and reduce its dependence on the contentious South China Sea.

The agreement, announced by Chinese vice-foreign minister Liu Zhenmin at the end of a state visit by Myanmar’s president Htin Kyaw, comes as China presses its southern neighbour for access to more infrastructure deals following setbacks at other projects. Work on the controversial $1.5bn Myitsone dam project — a symbol of what some see as the excesses of Chinese influence in Myanmar — has been suspended for years.

State-owned news agency Xinhua said a ship began offloading immediately at Myanmar’s Kyaukpyu port to send crude oil up the pipeline.