China and Myanmar signed an agreement to construct $15 billion oil and a $1 billion gas pipeline stretching from Myanmar's Arakan coast to Kunming. The pipelines will allow oil shipments from the Middle East and West Africa to be delivered to the Chinese mainland directly without passing through the strategically precarious Malacca Straits, while also facilitating export of Myanmar's own gas reserves. Construction of the pipelines is expected to finish by 2013. In addition to the pipelines, a port for oil tankers and a gas collection terminal will be built on an island near Kyaukphyu. China National Petroleum Corporation (CNPC) will hold 50.9 percent in the project while the remaining stake will belong to the Myanmar Oil and Gas Enterprise (MOGE). China will however bear all the expenses of the project1.

• 1. “China, Myanmar sign pipeline agreement,” Asia Energy, April 6, 2009, at http://asianenergy.blogspot.com/2009/04/china-myanmar-sign-pipeline-agre...