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.
"We must be ready to dare all for our country. For history does not long entrust the care of freedom to the weak or the timid. We must acquire proficiency in defense and display stamina in purpose." - President Eisenhower, First Inaugural Address
Thursday, April 20, 2006
China-Myanmar pipeline nixed- sea route carries more
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