The Hindu Business Line : China planning oil, gas pipeline across Myanmar

BEIJING: China has announced revival of its plan to build a giant $2.9 billion oil and gas pipeline across Myanmar, in a move to get a toehold on emerging Asian energy markets.

China, which has outbid Indian oil companies in a number of major contracts in Myanmar, said the work on the new pipeline connecting Myanmar with its Yunnan province would begin early next year, the China Daily newspaper reported on Wednesday.

Quoting Chinese oil companies' officials, it said that the project, a joint venture between China and Myanmar, was being undertaken to reduce Beijing's over-dependence on energy transportation from the Gulf through the straits of Malacca. The project includes constructing two separate pipelines one worth $1.5 billion oil pipeline and the other $1.4 billion gas pipeline, with the country's major China Natural Petroleum Corporation holding a 50.9 per cent stake in the project.

The remaining stake would be held by Myanmar Oil and Gas Enterprises. Once completed, the pipeline is expected to provide an alternative route for China's crude import from West Asia and Africa through the straits of Malacca.

Now, 80 per cent of China's crude imports of 200 million tonnes pass through the straits of Malacca. – PTI

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