Myanmar’s resistance tightens grip on key energy corridors

When the Brotherhood Alliance rolled out the now famous Operation 1027, they knew it would change the course of the war. Within weeks, the multi-pronged offensive alternated the conflict and shifted territorial control away from the junta at breakneck speed.The Brotherhood, composed of the Myanmar National Democratic Alliance Army (MNDAA), the Ta’ang National Liberation Army (TNLA), and the Arakan Army (AA) made huge gains within days. And as a result, the anti-junta campaign significantly diminished the regime’s capacity to protect their own oil and gas pipelines, a revenue stream that once benefited its vital ally and neighbor, China.The pipelines—which are largely built on Chinese investment— stretch from northern Shan State all the way to China’s Yunnan Province. It also cuts through Rakhine State in the west, to Magway and finally Mandalay regions in central Myanmar. Once a critical part of the junta’s financial revenue stream, most of the zones the pipeline runs through are now under the control of ethnic resistance organisations (EROs) and resistance forces, undermining the regime’s power further. The project is one of China’s largest investments in Myanmar, exceeding $2.5 billion. It is designed to transport up to 22 million tons of crude oil and 12 billion cubic meters of natural gas annually. Jointly operated by Myanmar’s Myanma Oil and Gas Enterprise (MOGE) and China’s state-owned China National Petroleum Corporation-Southeast Asia Pipeline Co. Ltd (CNPC-SEAP), the project is run through the South-East Asia Oil and Gas Pipeline Company (SEAOP). CNPC-SEAP holds a 50.9 percent stake, while MOGE owns 49.1 percent. Other stakeholders include South Korea’s POSCO Daewoo and KOGAS, along with Indian firms GAIL and ONGC Videsh, forming the Southeast Asia Natural Gas Pipeline Company (SEAGP). CNPC-SEAP controls 50.9 percent of the natural gas pipeline, South Korean companies hold 29.21 percent, Indian firms own 12.51 percent, and MOGE retains 7.36 percent. The junta earns $12.81 million annually from the project, plus a $1 fee per ton of crude oil transported.Today, the junta still controls Kyaukphyu Town, where the pipeline project begins. It also operates in Magway Region’s Yenangyaung and Minbu towns, areas where the pipeline’s control stations are located. The military regime also holds authority in the city of Mandalay and both Kyaukse and Taungtha towns in Mandalay Region.But the military is losing ground fast.It is currently battling resistance forces and ethnic armed groups across several townships along the pipeline in Mandalay Region, including Kyaukpadaung, Taungtha, Natogyi, Sintgaing, and Pyin Oo Lwin. Both sides are fighting for control of these strategic areas, with clashes ongoing.In January, the Arakan Army (AA), a powerful ethnic armed group based in Rakhine State, captured a key control station for the oil and gas pipeline near Taung Zauk Village in Ann Township, Rakhine State, taking control of the majority of the pipeline in Rakhine State. The natural gas pipeline originates in Ramree Island in Rakhine State, while the crude oil pipeline starts at Maday Island. Both are controlled from main stations in Kyaukphyu.Clashes occur almost daily along the Ann-Padan Road, a key access route at the border of the Rakhine Mountains (Rakhine Yoma) and Magway Region, as AA troops and resistance forces intercept and attack this regime supply and reinforcement routes.Following the Arakan Army's capture of the Western Regional Command in Ann, Rakhine State, military operations have extended into Magway Region, where the pipeline passes, an official from the People’s Revolution Alliance (PRA-Magway) told Myanmar Now."With Rakhine and Chin now liberated, there are greater opportunities to launch military operations in Magway Region from these areas,” the official stated. “The junta council, meanwhile, is also increasing its military activities.”The PRA-Magway is a resistance group that operates in Ngape and Sidoktaya Townships, located in Magway Region. Junta forces have set up a base in Pu Daung Village, another location where the pipeline flows, and are expanding operations.The regime is raiding villages near Mann Shwe Settaw Pagoda, forcibly recruiting and detaining civilians, raising the risk of clashes, according to sources at PDF Battalion 6. The source told Myanmar Now that fighting along the pipeline in Magway Region is likely to escalate throughout the year. “China is interfering”The battle for control over Myanmar’s vital energy infrastructure extends deep into Mandalay Region, where resistance forces are challenging the junta’s ability to control key pipeline routes. Beyond Magway Region, the two pipelines traverse Kyaukpadaung, Taungtha, Natogyi, and Sintgaing Townships in Mandalay Region. The control stations for the pipelines are located in Taungtha, Kyaukse, and Mandalay City.Junta troops are permanently stationed at these locations, which has hindered their ability to patrol the pipeline or carry out raids in nearby areas, according to Thet Gyi, an officer with Myingyan District PDF's Battalion 7, a group that operates under the National Unity Government (NUG), Myanmar’s elected government in exile. "Seventy percent of this region is now under our control,” he told Myanmar Now. “The junta can only maintain dominance in the urban areas.” He explained that with a decrease in troop numbers and a lack of officers willing to fight, the junta is now more focused on defending their battalions and bases rather than pushing forward with new offensives. Thet Gyi pointed out that the revolution should have made more progress by this stage, but some of its successes have been delayed due to China's backing of the junta. He mentioned that although he wishes to destroy the two pipelines he has under his command, he feels he must be cautious, careful to not make any reckless movements that could impact future relations with Beijing. "At this point, China is interfering with our country's politics as they see fit,” Thet Gyi said. “This is something we are not happy about. We want to fight back, but we must exercise restraint to prevent causing diplomatic problems for the NUG government."In December 2024, SEAOP/SEAGP reported the Rakhine pipeline remained secure despite regional instability, Yangon media reported. However, the report is not publicly available on the company’s or CNPC’s websites. The report claims that engineers and local workers conduct daily patrols along the pipeline to monitor its condition and avert any security threats or incidents.Yet this information contrasts the reality on the ground, sources say, where anti-junta forces, in armed clashes, have captured numerous key control stations across the west and central parts of the country.Myanmar Now has attempted to reach the China National Petroleum Corporation (CNPC-SEAP) for comment, but did not receive a reply. "They used to station guards along the pipeline and place GPS trackers on civilians to monitor the situation,” Ba Yan from the Taungtha People’s Movement Committee, told Myanmar Now. “However, it has been quite some time since they were last able to provide security for the pipeline.” Since 2023, regime forces have been forced to abandon security along the entire pipeline route in the Mandalay Region due to the threat of expanding resistance forces. Ba Yan said that all that remains is a joint force of police and regime soldiers stationed at some pipeline control stations in Taungtha Township.Junta’s diminishing control The results of Operation 1027 posed the biggest threat to Myanmar's military regime since the 2021 coup. At a rapid pace, the Brotherhood Alliance launched simultaneous attacks on junta forces across 20 towns.During the offensive, the MNDAA seized key border trade routes and strategic towns critical to China-Myanmar commerce, including Laukkaing, Chin Shwe Haw, Muse, Kutkai, Hseni, and Lashio townships.At the same time, the TNLA took control of 12 towns, including the mining town of Mogok, located between Mandalay Region and Shan State, where they have since set up an administrative system and local governance. The TNLA also controls several towns along the pipeline route, including Nawnghkio, Kyaukme, Namtu, and Namhkan, as well as Hsipaw.In Pyin Oo Lwin, which lies at the entrance to Shan State from Mandalay, the military has struggled to exert full control over the townships as ongoing clashes with the resistance have continued.Myanmar Now made attempts to reach the TNLA spokesperson, Lway Yay Oo, for a comment on the pipeline project, but he did not respond to requests.Resistance sources say the junta's failure to maintain security over the China-Myanmar oil and natural gas pipeline project is presenting a significant challenge for the implementation of the China-Myanmar Economic Corridor, a key component of China's broader Belt and Road Initiative, widely known as the New Silk Road.Ba Yan, from the Taungtha People’s Movement Committee, believes that the regime’s grip on one of Myanmar’s most strategic economic corridors is slipping, and with it, so is its ability to secure China's multi-billion-dollar energy interests. And as ethnic armed groups and resistance forces continue their advance, Beijing may soon be forced to reconsider whom it views as the true guarantor of stability in Myanmar.As resistance forces tighten control, the pipeline has remained largely intact. Ba Yan attributes this to diplomatic considerations between the National Unity Government (NUG) and China, delivering a brief but pointed message to Beijing. “China should now realise who will truly safeguard its interests.” Two members of the Ta’ang National Liberation Army (TNLA) pictured in Namhkan Town, November, 2023 (Myat Pan/Myanmar Now)

Myanmar’s resistance tightens grip on key energy corridors

"At this point, China is interfering with our country's politics as they see fit. This is something we are not happy about”

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