Gas Set to Flow from Myanmar to China

The pipeline that will transport natural gas from Rakhine State to China’s Yunnan province will begin operating at the end of July, according to a director of state-owned Myanma Oil and Gas Enterprises, which is a partner in the dual pipeline project with several foreign firms.

U Than Tun, director of offshore exploration at the company, said that more compensation could also be offered to those whose livelihoods have been damaged by the project that will see two pipelines transport crude oil and natural gas from the coast of Rakhine to the border with China in Shan State. “We will make sure the people are treated fairly,” he said, adding that those who lost land have already been compensated.

His statement preceded a report in state-run New Light of Myanmar on June 29 quoting an unnamed official from the the same company saying the gas will begin to flow to China on July 1.

The official also said that no leakages are expected on the controversial pipeline.

Alice Pyr, a representative of two Chinese companies involved in the project, said Southeast Asia Crude Oil Pipeline and Southeast Asia Gas Pipeline – both majority owned by China National Petroleum Company – will donate another US$2 million a year “to improve the living standard of local people around the pipeline area”.

Ms Pyr said the gas pipeline is operational and that it will begin transporting gas to China this month. “We are still not sure about the exact date yet,” she added.

The comments follow reports that the gas pipeline is behind schedule. Myanmar Energy Minister U Than Htay told Reuters on June 11 that it will be delayed by two or three months.

Construction in Myanmar is complete, but construction in China is delayed, he was quoted as saying.

A report released by United States-based Asia Society last week said Nay Pyi Taw is “apparently” preparing “to renegotiate contracts for all previously agreed-upon [energy and mining] projects to ensure that appropriate safeguards are in place and to subject future projects to stricter social and environmental controls”.

The report did not mention specific projects, nor did it include statements from government officials supporting this claim. Its author did not respond to a request for more information.

Ms Pyr said neither of the firms she works with had been told by the government that it was reconsidering the project. The government had publicly endorsed the project, she said, adding that it will benefit Myanmar.

U Than Tun said those who believe they have been damaged by the project should seek fair compensation rather than try to shut it. “If the project operates fully, Myanmar can get 100 million cubic feet [of natural gas] a day, so the benefit of the project is incredible.”

(mmtimes.com, edited by Topco)