China’s drama in Myanmar continues to unfold. Almost daily, local news media run reports charging the Middle Kingdom of numerous abuses as it seeks to fervishly complete the controversial China-Myanmar oil and gas pipelines.
Work on the pipeline began in 2010 in an effort to transport oil from the Middle East, effectively bypassing the Strait of Malacca, helping China with not only extra oil and gas supply but enhancing its energy security.
The pipelines will run parallel from Myanmar’s west coast, through the country’s mid-section before entering China at the border city of Ruili in Yunnan province. A crude oil terminal will also be built on the west coast of Myanmar’s Kyaukryu.
The gas pipeline will receive gas from the offshore Shwe gas fields.
The oil pipeline will be 771 kilometers (479 miles) long while the natural gas pipeline will extend further to Kunming and Guizhou and Guangxi in China, running a total of 2,806 kilometers (1,700 miles). The pipelines are scheduled to begin operations by June.
The oil pipeline is jointly invested and built by China National Petroleum Corporation (CNPC) and Myanmar Oil and Gas Enterprise (MOGE) and administered by the South East Asia Crude Oil Pipeline Company (SEACOP).
The gas pipeline is jointly invested and built by CNPC, MOGE, Daewoo International, KOGAS, Indian Oil and GAIL and administered under the company name of the South East Asia Gas Pipeline Company (SEAGP). CNPC has operating control of SEAGP.
Additionally, CNPC has already signed a 30-year deal to purchase natural gas from the Shwe fields, the A-1 and A-3 blocks.
However, the pipeline project has been controversial from its inception and as it nears completion, is even more divisive.
While China, through CNPC, tries to manage the Southeast Asian quagmire, it isn’t managing it very well.
The Myanmar-China Pipeline Watch Committee (MCPWC) reported at the end of April that it is conducting an assessment of the social impact of the pipeline. Some of the complaints include limited compensation paid to displaced persons as well as a lack of international standards in its implementation processes.
The MCPWC claims that only .0128% of the pipeline’s budget was used for land compensation. Another group of activists said that authorities had not yet provided compensation to many individuals displaced by the project. They claim that less than two-thirds of local residents have received any compensation for confiscated lands.
According to an April 10 Irrawaddy report, farmers displaced in Shan State claim that they also did not receive compensation.
The Irrawaddy quoted one farmer who said when his land was taken in November 2010 he was given 4 million kyat ($4,625) for his 60-hectare plot of land. The farmer added that he made more than 5 million kyat ($5,700) annually from growing tea on the property.
Local officials however maintain that residents received full compensation of 4 million kyat ($4,625) per hectare.
A similar scenario is being playing out across the 21 Myanmar townships where the pipeline has been built. On Maday Island, where the pipeline starts, locals also claim that full compensation was not given for their lands.
However, a CNPC spokesman gave a plausible answer, stating that the process of compensating landowners was difficult because most land on Maday Island was officially registered as vacant.
U Tun Kyi, chairman of the Maday Island Development Association countered by stating that most residents did not have official land ownership documentation.
“They are working and living on the land of their ancestors,” he said. “If [CNPC] doesn’t compensate residents who can’t show land ownership certificates we will continue to push for the rights of our people.”
Yet, compensation for confiscated lands is just the beginning of CNPC’s headaches. While the oil major may be able to deal with local residents, it may have a harder time keeping the pipeline secure.
Local media reported fighting between Kachin militia and Myanmar government troops near the northern part of the pipeline, just before it enters Yunnan, raising doubts about security.
One Western security consultant, quoted by Interfax News Agency, said “running an over-ground gas pipeline in a location where an armed conflict is taking place is absolutely unadvisable.” He added that a stray bullet could easily cause an explosion.
Not only is this true, but it must bring up disturbing images of sabotage in the minds of CNPC executives. With Chinese interests in Myanmar creating such animosity, one can imagine angry farmers deprived of ancestral lands and livelihoods having carte blanche with the pipeline once it’s complete.
Other allegations are even more disturbing. Some locals accuse Chinese pipelines workers and soldiers of sexual harassment to such an extent that women can’t leave their homes unaccompanied.
Residents also claim that they have forced restrictions in movement since soldiers have been deployed to protect parts of the pipeline. All the while, those residents that dare speak up and protest are often jailed. For example, on April 25, the Myanmar Times reported that ten residents in Maday are facing prison terms for protesting against the pipeline without permission. The protestors claim that they applied twice (in December and March) for permission to hold protests but were denied.
Interestingly, the ten arrested, part of 200 that protested in front of a CNPC site, had just met with CNPC officials to state their grievances. CNPC stated that they did not request the arrest of the protestors.
So, the quandary in Myanmar continues. While there is little doubt now that the pipeline will be completed and in operation within a month or two, it remains to be seen if China can maintain the peace. If building the pipeline was so problematic, keeping it up and running may prove even more of a nightmare.
Credit & Copy From; http://www.energytribune.com/76512/chinas-myanmar-pipeline-drama-continues-to-unfold#sthash.fvylEglv.dpbs
