The plan to build a crude oil pipeline between Myanmar and China has been shelved because of viability concerns, Shanghai Securities News cited well-informed sources as saying April 19. The pipeline was vetoed for its poor economics, insiders say.
Myanmar produces no oil and building a transit pipeline is not viable in economic terms. On the other hand, if constructed, the pipeline's capacity would account for merely 10% of the oil shipments currently passing through the Malacca Strait, which would not go far in solving the country's energy supply security concerns.
The news contradicted earlier reports that the Chinese government had greenlighted the construction of the pipeline.
Thursday, April 20, 2006