Gas begins flowing through China pipeline

A pipeline carrying natural gas to China is now fully operational, officials said at an opening ceremony held in Mandalay Region on July 28.

The Shwe project – which required the cooperation of four countries over a three-year period, and drew controversy and protest at seemingly every stage – was officially opened at Thayatten village in Amarapura township.

The project was launched in October 2010 as a joint venture involving six companies from Myanmar, China, South Korea and India. Individual sections of the 793-kilometre (492-mile) pipeline were linked in May of this year, Myanmar Vice President U Nyan Tun said at the ceremony. Gas started flowing from an onshore supply station in Rakhine State on July 15 and reached a station in Namkhan, near the Myanmar-China border, on July 17.

“The pipeline is 793 kilometres long and 40 inches in diameter. It [transports] over 1200 cubic metres of gas per day,” he said.

“The gas pipeline was built by crossing Rakhine Mountains, Myitnge River, Shan Mountains and Gokteik Gorge.

“The government appreciates the impressive performance of SEAGP [South East Asia Gas Pipeline Company] and construction firms.”

Less appreciative have been residents of affected areas, some of whom have complained of receiving inadequate compensation for lost lands. Civil society groups have also lobbied on a range of issues related to the project, from its environmental impact to transparency over the revenue that it will generate. (See related story right.)

In a statement, SEAGP said that environmental protection was a top priority. The company used specialised underwater pipes where the pipeline crossed beneath farmland to avoid disrupting irrigation, it said, and also created many jobs for local residents.

But in his address U Nyan Tun said the project would benefit both countries by boosting Myanmar’s economy and meeting China’s energy needs. Its successful implementation will encourage further collaboration between the two nations, he said.

He also thanked SEAGP “for providing US$14.2 million aimed at developments for residents living near the project route”.

The SEAGP consortium includes CNPC of China, Daewoo and KOGAS of South Korea, OCEBV and Gail of India, and the state-run Myanma Oil and Gas Enterprise.