CHINA is to construct two pipelines into Burma in a project that would give it easier access to energy but also potentially raise concerns about its links with the nation's ruling junta. Work on the pipelines, one for gas and one for oil, will begin in SW China's Yunnan province in the first half of 2009, state-run China Daily reported, indicating that the project has been in the planning stages for a number of years before the launch announcement. Once is completed, at least part of China's crucial 200-million tons/yr energy supplies (up by 10% since 2006) will be able to avoid the long and potentially insecure route through the Malacca Strait: around 80% of China's oil imports are from the Middle East and Africa, and currently are transported through the Strait. The pipelines are among a series of large energy and infrastructure projects to be undertaken in Yunnan province, quoting Mi Dongsheng, head of the provincial economic planning agency. The China-Burma pipeline project was first discussed by Yunnan officials at least five years ago, but was shelved. The reason it may now have been revived could be China's drive to boost its own economy to withstand the fall-out of the global financial crisis. Burma's junta will see considerable economic benefits from a project of this size, although the real value for the isolated regime could be symbolic, according to observers. China has been criticized for doing little to improve the human rights' situation in Burma, despite its status as one of the nation's closest allies. The pipeline could increase the pressure on China. Investment in the Burma pipelines project will be $2.5 billion, with China National Petroleum Corp holding a 50.9% share; Myanmar Oil and Gas Enterprise will hold the remaining share, according to the report.


Basket is empty.








