The China National Petroleum Corporation (CNPC) has reportedly finalised an agreement with Bangladesh's government-controlled PetroBangla to search for oil and gas both inside the country as well as off shore. Negotiations on the agreement commenced following a visit by senior CNPC officials to Bangladesh earlier in the year and Chinese government also promised a loan of $1 billion to help such exploratory activities. Analysts believed that the Chinese move was geared towards securing energy supplies to feed its unstoppable energy needs.

Reports also noted that China has expressed interest in co-funding a major crude oil trans-shipping and processing terminal on the west coast of Malaysia. This pipeline would offer Beijing an alternative route for its Middle East imports should relations with Burma sour or if a change of regime occurs there1.

• 1. “China Hedges its Energy Bet with Move into Bangladesh,” The Irrawaddy, September 2, 2009, at http://www.irrawaddy.org/print_article.php?art_id=16706