BEIJING: The first phase of the Myanmar-China gas pipeline became operational on Monday with China expecting 12 billion cubic meters of natural gas from its neighbor every year.
This will pave the way for a more important oil pipeline project that will enabled China to move crude from West Asia from the Indian Ocean through Myanmar.
The 793 km gas pipeline connects Myanmar's coast on the Bay of Bengal with southwest China's Yunnan province. China is also involved in the construction parallel 771km oil pipeline that will reduce China's dependence on the crowded Malacca Straits for shipping oil.
The main players in the gas and oil projects are state-owned China National Petroleum Corporation and Myanmar's national petroleum company Myanmar Oil and Gas Enterprise. Four other companies from India and South Korea have financial stakes in the project, according to CNPC.
China has been anxious about its future relationship with Myanmar after its government initiated a series of moves that include opening up the market to investments by western countries, and granting some democratic rights that were not available before.
Myanmar President U Thein Sein recently assured China of its importance when he has described his country's relationship with China as "paukphaw" (fraternal). He called for Myanmar-China comprehensive strategic cooperation during a recent meeting with Fan Changlong, vice chairman of the China's Central Military Commission in Nay Pyi Taw.
Sein's statements are significant because Myanmar is regarded by many as China's springboard to the Indian Ocean. China is wooing both Myanmar and Sri Lanka to obtain this crucial access both for strategic reasons, and for establishing an alternative shipping route.
The project is important to China because Chinese companies involved in infrastructure projects are facing resistance in Myanmar. Last year Myanmar suspended construction of the China-backed Myitsone dam, which would displace thousands of people.
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