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China Secret Deal of Shipping Oil Up the Mekong River Raising Concerns

Posted by Author on January 21, 2007

By Marwaan Macan-Markar, Japan Focus, January 20, 2007-

BANGKOK – Energy-hungry China has started to use the Mekong River (map below) as a newMekong River oil-shipping route, raising new environmental concerns that accidental spills could adversely affect the livelihoods of nearly 60 million downstream river dwellers and eventually evolve into a bone of diplomatic contention between Southeast Asian countries and China.

The maiden journey on December 29 of two Chinese ships carrying oil up the Mekong underscored Beijing’s steadfast determination to find alternative routes for transporting the oil and gas it imports from the Middle East. The two vessels arrived at a port in China’s southwestern province of Yunnan carrying a total of 300 tons of refined oil, which was shipped from a port in Thailand’s northern province of Chiang Rai, according to Xinhua, China’s state news agency.

This journey along the Mekong marked ”the trial launch of China’s oil-shipping program with its Southeast Asian partners”, Xinhua said. “Experts say the waterway will serve as an alternative to the Strait of Malacca as a route for oil shipping and help to ensure oil supply to Yunnan and southwest China at large.”

About 75% of China’s fuel supplies currently flow through the narrow, pirate-infested Strait of Malacca, positioned between peninsular Malaysia and the Indonesian island of Sumatra. On the strategic front, Beijing has repeatedly expressed its concerns that in a potential conflict US naval vessels could move to choke off Chinese fuel shipments through the waterway.

The fate of the Mekong, which originates in Chinese territory, has long been a point of contention between China and Southeast Asia. China’s plans to develop as many as a dozen hydroelectric dams along the upper reaches of the river have raised concerns and drawn criticism about the impact on downstream riparian communities in Southeast Asia. Beijing recently scaled back those plans, but the two dams already in operation have at times appeared to dry up the river in northern Thailand.

The Mekong River was made accessible to large cargo ships only in 2004, when a series of rocky rapids in Laos were cleared by Chinese engineers. Since, there has been a growing trade along the river in mostly agricultural and manufactured goods, flowing mainly from southern China to northern Thailand. There have been concomitant concerns that the route has opened the way for human traffickers to move Chinese people more easily into Laos and Thailand and destinations outside the region.

Environmental groups first raised the alarm in 2004 when Beijing unveiled vague plans to use the new trade route for shipping oil. Those same groups expressed concerns in mid-2006 when China moved to secure an increase in the quota of oil it intends to move up the Mekong River. The initial agreement, signed last March by Myanmar, Laos, Thailand and China, permitted a monthly shipping quota of a mere 1,200 tons of refined oil.

When the two Chinese ships made their landmark journey last month, Beijing had set its sights on transporting close to “70,000 tons of refined oil each year from Thailand alone via the Mekong River”, Qiao Xinmin, a Chinese maritime-affairs official, was quoted as saying by Xinhua.

Muddying the waters

The shipment of oil on the Mekong has environmental groups up in arms. “The whole deal was done in secrecy with no information released to the public or attempts to get the people’s views, especially those living along the Mekong River,” said Premrudee Daoroung, co-director of the Towards Ecological Recovery and Regional Alliance (TERRA), which is based in Bangkok. “This confirms who controls the Mekong.”

With blueprints to dam the Mekong on the table, Beijing managed to win over Southeast Asian governments when it changed course and offered to deepen the Mekong by blasting rapids in Myanmar and Laos and open the way for large ships to navigate the river. “China led this effort and was the first to give the money for it, because it was going to be the main beneficiary,” Premrudee said. ( More details from Japan Focus’ report )

3 Responses to “China Secret Deal of Shipping Oil Up the Mekong River Raising Concerns”

  1. delilah said

    i think that this is very dangerous look al how long it took for them to clean up the oil spill in the Gul of Mxico

  2. Matt said

    How can the Mekong serve as an alternative to the Strait of Malacca when it is in the Gulf of Thailand? China surely isn’t getting its energy from the Pacific, but from the Middle East like everyone else.

    Re: the point, this should hardly be surprising. China has strongarmed ASEAN for years. China will always put China first. Especially when it comes to energy.

  3. i think its very fiar point however. this needs to be sorted out asap though it could cause all sorts of problems and not doing the enviroment any good at all

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