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Myanmar’s Depleted Oil Pipeline
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The Diplomat
An oil pipeline carrying imported crude from Myanmar to China is facing a two-front crisis: armed conflict at home and a maritime blockade overseas.
The pipeline is connected to a crude oil terminal built to accommodate large tankers transporting fuel from the Middle East.
The Kyaukphyu SEZ, which includes the oil terminal and pipeline on Maday Island, is a dependable revenue source for the state-owned Myanma Oil and Gas Enterprise.
The Myanmar oil pipeline has reliably supplied crude to Yunnan Petrochemical, a state-owned energy enterprise near Kunming.
The oil pipeline, completed in 2014, was built as a “strategic hedge” against a potential disruption in the Strait of Malacca, the maritime artery that supplies 80 percent of China’s crude oil imports.