Sino-Burmese Pipeline Work to Begin Soon

By WAI MOE

The project to build an oil and gas pipeline from Burma’s southwestern port in Kyaukpyu to China’s Yunnan Province will start in early 2009, according to a Chinese media report on Wednesday.

China’s state-run newspaper China Daily said that under the US $ 2.5 billion agreement between Burma and China, The China National Petrol Corp will have 50.9 percent stake while state-owned Myanmar Oil and Gas Enterprise will hold the rest.

The project includes a US $1.5 billion oil pipeline and US $1.04 billion gas pipeline.

“The long-awaited China-Myanmar [Burma] pipeline is expected to provide an alternative route for China's crude imports from the Middle East and Africa and ease the country's worries of its over-dependence on energy transportation through the Strait of Malacca,” China Daily said.

Meanwhile, Zhang Gaoli, a political bureau member of the Central Committee of the Communist Party of China, and his delegation concluded its three-day visit to Burma.

During the visit, the Chinese delegation—invited by Lt-Gen Tin Aye— met with Burma’s prime minister Gen Thein Sein in Naypyidaw on Wednesday, according to The New Light of Myanmar.

On the same day, Tin Aye and Industry 2 Minister Vice-Admiral Soe Thein held a separate meeting with Zhang Gaoli in Naypyidaw. Tin Aye is chief of the Office of Chief Defense Industries in Burma.

Xinhua said that Zhang Gaoli exchanged views with Thein Sein on bilateral ties and on domestic, political and economic issues.

Zhang Gaoli’s visit is the second by Chinese officials within a month. Gen Zhang Li, vice chief-of-staff of the Chinese People’s Liberation Army, met with Snr-Gen Than Shwe, head of the Burmese junta, at the end of October in Naypyidaw.

China is Burma’s main trading partner. Since 1988, the Tatamadaw (Burma’s armed forces) has depended mainly on China—especially for military equipment.