[Myanmar Business Today, Myanmar Times]
“The China National Petroleum Corp (CNPC), China’s state-run oil and gas firm, said last week that the [2,520-kilometre long] China-Myanmar gas pipeline has gone into full operation after it completed the section connecting the cities of Lufeng and Guigang in southwest China.”
“The pipeline, also known as Shwe Gas Project, is China’s fourth strategic energy supply channel, following the Russia-China oil pipeline, the Central Asia gas pipeline and the sea route through the Malacca Strait.”
“Nomita Nair, partner at law firm Berwin Leighton Paisner, told Myanmar Business Today: “The pipeline is part of a strategic play for China to escape depending on the Straits of Malacca and bolster its energy security.”
“The pipelne send 12 billion cbm of natural gas annually to southwest China, which will reduce coal consumption by 30.72 million tonnes per year, according to the CNPC.”
“Construction of the gas pipeline began in 2010 and the Myanmar section of the gas pipeline started to deliver gas to China in late July. An oil pipeline is also under construction alongside the gas pipeline, and it will be completed by the end of the year, according to CNPC.”
“However, the project was mired with allegations of land confiscation, displacement of local communities and environmental risks. A number of protests in Myanmar and abroad took place against the construction of the pipeline, which along with protests against the Letpadaung copper mine and the Myitsone dam strained the China-Myanmar “fraternal” relationship significantly.”
“The project is also part of a larger Chinese programme to lay a road connecting the country’s Yunnan province to the Indian border through Myanmar although New Delhi has not yet accepted the road connectivity plan. China also plans to transport crude oil across the Myanmar border and complete an irrigation project in Myanmar which Nay Pyi Taw has stalled.”
“Daewoo announced the discovery of the Shwe gas field off the coast of Rakhine in 2004. The government awarded purchasing rights to China in 2008 under an agreement to export 6.5 trillion cubic feet (184 billion cubic metres) over 30 years. The SEAGP/SEAOP, a group of energy companies from China, Korea, India and MOGE (Myanmar Oil and Gas Enterprise) operates the line.”
Read more: China-Myanmar Gas Pipeline Becomes Fully Operational and Controversial pipeline now fully operational
2021-week28
