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China-Myanmar pipeline to open in May
By Jamil Anderlini in Beijing and Gwen Robinson in Yangon
High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. China-Myanmar pipeline to open in May - FT.com
A pipeline connecting the Indian Ocean coast of Myanmar with southwest China will begin pumping gas at the end of May, according to the Chinese company that built it.
The new pipeline will help free China from its over-dependence on the Strait of Malacca as transit way for its energy imports, giving the country an alternate and shorter supply route.
CNPC, the parent of publicly listed PetroChina, published state media reports on its website on Monday saying that the 793km pipeline would be fully operational by May 30, less than three years after construction began.
High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. China-Myanmar pipeline to open in May - FT.com
A parallel pipeline that will transport crude oil imports from the Middle East and north Africa across the width of Myanmar and into China is expected to be finished by next year, the reports said.
At present, about 80 per cent of Chinas crude oil imports are transported through the strategically important Strait of Malacca, but the new oil pipeline is expected to reduce Chinas reliance on that route by about one-third.
The new pipeline should cut the transport distance for African and Arabian oil shipments by about 1,200km.
But far more important to Beijing than the shorter distance will be reducing the vulnerability that comes from so much of the countrys energy supply being transported through a geographical chokepoint that is effectively controlled by the US, which remains the strongest naval power in the region, despite Chinas growing investment in its own military.
The new pipelines provide China with an alternative supply route should the Strait of Malacca ever be blocked because of piracy, terrorism or conflict, said Stephanie Kleine-Ahlbrandt, northeast Asia director at International Crisis Group. Beijing also fears that the straits could be threatened or cut off by the US if there was ever a conflict between the countries in the Taiwan Strait or elsewhere.
The new gas pipeline will have the capacity to carry 12bn cubic metres of gas a year to China, with most of that supply to come from Myanmars gasfields in the Indian Ocean.
As China tries to diversify away from a heavy reliance on coal, its natural gas demand is forecast to grow by an average of 20 per cent a year between 2010 and 2015, with the main constraint being a lack of supply.
The crude oil pipeline scheduled to go into operation next year will be able to carry 22m tonnes a year of imported crude to China. The country imported a total 271m tonnes of crude oil in 2012.
Myanmar will take no more than 2m tonnes of crude oil and 2bn cubic metres of gas a year from the pipeline for its domestic consumption.
Human rights and environmental groups have criticised the pipeline for safety concerns, environmental damage and inadequate compensation for residents affected by its construction.
Chinese state media reports laud the project for contributing to the economy of Myanmar and solidifying the brotherly bond between the two countries.
By Jamil Anderlini in Beijing and Gwen Robinson in Yangon
High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. China-Myanmar pipeline to open in May - FT.com
A pipeline connecting the Indian Ocean coast of Myanmar with southwest China will begin pumping gas at the end of May, according to the Chinese company that built it.
The new pipeline will help free China from its over-dependence on the Strait of Malacca as transit way for its energy imports, giving the country an alternate and shorter supply route.
CNPC, the parent of publicly listed PetroChina, published state media reports on its website on Monday saying that the 793km pipeline would be fully operational by May 30, less than three years after construction began.
High quality global journalism requires investment. Please share this article with others using the link below, do not cut & paste the article. See our Ts&Cs and Copyright Policy for more detail. Email ftsales.support@ft.com to buy additional rights. China-Myanmar pipeline to open in May - FT.com
A parallel pipeline that will transport crude oil imports from the Middle East and north Africa across the width of Myanmar and into China is expected to be finished by next year, the reports said.
At present, about 80 per cent of Chinas crude oil imports are transported through the strategically important Strait of Malacca, but the new oil pipeline is expected to reduce Chinas reliance on that route by about one-third.
The new pipeline should cut the transport distance for African and Arabian oil shipments by about 1,200km.
But far more important to Beijing than the shorter distance will be reducing the vulnerability that comes from so much of the countrys energy supply being transported through a geographical chokepoint that is effectively controlled by the US, which remains the strongest naval power in the region, despite Chinas growing investment in its own military.
The new pipelines provide China with an alternative supply route should the Strait of Malacca ever be blocked because of piracy, terrorism or conflict, said Stephanie Kleine-Ahlbrandt, northeast Asia director at International Crisis Group. Beijing also fears that the straits could be threatened or cut off by the US if there was ever a conflict between the countries in the Taiwan Strait or elsewhere.
The new gas pipeline will have the capacity to carry 12bn cubic metres of gas a year to China, with most of that supply to come from Myanmars gasfields in the Indian Ocean.
As China tries to diversify away from a heavy reliance on coal, its natural gas demand is forecast to grow by an average of 20 per cent a year between 2010 and 2015, with the main constraint being a lack of supply.
The crude oil pipeline scheduled to go into operation next year will be able to carry 22m tonnes a year of imported crude to China. The country imported a total 271m tonnes of crude oil in 2012.
Myanmar will take no more than 2m tonnes of crude oil and 2bn cubic metres of gas a year from the pipeline for its domestic consumption.
Human rights and environmental groups have criticised the pipeline for safety concerns, environmental damage and inadequate compensation for residents affected by its construction.
Chinese state media reports laud the project for contributing to the economy of Myanmar and solidifying the brotherly bond between the two countries.
