Abstract: A new distributed optical fiber pipeline leakage detection technology based on the principle of Mach-Zehnder optical fiber interferometer is proposed.An optical cable should be laid along the pipeline when applying this technology to pipeline leakage detection.The distributed micro-vibrant measuring sensor is composed of three single mode optical fibers in the optical cable.The oil leakage can be detected by the sensor in real-time by measuring leaked noise along pipeline.The position of leaking point can be obtained by defining the value of time delay of the two measuring signals with the generalized correlation time delay estimation algorithm.This technology is applicable for various oil and gas pipeline leakage detection.The measuring principle and the leaking point location method for this technology are described.The experiment result showed that this technology can greatly improve the measuring sensitivity and detecting precision of leakage location on pipeline.