Myanmar strategic pipeline Attack, threatens China's investment

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NAYPYIDAW, 07 May, 2021 (TON): As Myanmar’s violent protest continues throughout the country are causing disruption, Chinese energy companies contracted to build power plants in the nation are considering exiting the market.

According to the Irrawaddy report, since the military staged a coup in February, China seems to be very concerned over the unfolding chaos in Myanmar.

The strategic pipeline carries 12 billion cubic meters of gas, while the crude oil pipeline transports 22 million tons annually. "Power Projects taken up by Chinese state-backed liquefied natural gas and solar energy companies would have been difficult to implement even before the Feb. 1 military takeover, insiders say. Now the coup has further complicated matters," Nikkei Asia said in its report.

Calling the pipelines a crucial part of the Belt and Road Initiative (BRI), in February, Chinese officials have asked Myanmar officials to tighten security measures at the pipelines. "Any damage to the pipelines would cause huge losses for both countries."

This important Chinese project recently came into the spotlight following Wednesday's attack on a group of security personnel who were standing guard at the pipelines' station in Mandalay. Reportedly, three guards at the "oil and natural gas station" were killed by unidentified attackers.

Earlier, a group of protesters in Myanmar chanted “China’s gas pipeline will be burned” on the route of a Chinese pipeline.

Many people in Myanmar are upset with the Chinese authorities. China accused protesters of setting the factories alight. However, protesters denied the accusation saying the attacks were a plot to justify military crackdowns.

The gas pipeline, which carries gas from Myanmar’s offshore fields, opened in 2013, as Myanmar’s military was starting democratic reforms. The $1.5 billion 770-km (480 mile) oil pipe alongside, bringing crude mainly from the Middle East, started in 2017 under the government of elected leader Aung San Suu Kyi, who is now detained and facing an array of charges.

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