Myanmar junta turns to China amid fuel crisis

Myanmar’s military government is tightening its energy ties with China as the country struggles with soaring fuel prices and chronic shortages.

Regime media reported this week that Energy Minister Ko Ko Lwin met Chinese state‑owned firms in Kunming, including China Southern Power Grid and Yunnan Energy Group, to discuss long‑term fuel imports at lower rates. Talks also covered drilling new wells, building refineries and expanding supply chains for crude oil and refined products.

The push comes as Myanmar faces a worsening crisis: the country imports 97 per cent of its petrol and diesel, leaving the junta heavily exposed to global shocks. The Middle East conflict has further driven up costs, hitting transport, farming and daily life.

On 10 April, the day Min Aung Hlaing was sworn in as president, Ko Ko Lwin signed a deal with China’s North Petro‑Chem Corporation to boost production at the Htauk Shar Pin‑Kanni oil field in Magwe Region. Officials promised a quick rise in output but gave no details on profit‑sharing.

From Kunming, the minister travelled to Beijing for talks with China Railway Beijing Engineering Group and MEIGE Joint Energy Holding, focusing on refineries, hydropower and cross‑border electricity projects. Plans were also floated for solar‑powered EV charging stations.

The junta is already working with Chinese firms on the Thanbayakan Refinery Project in Magwe, designed to process up to two million tonnes of crude oil annually using supplies from the Myanmar‑China pipeline.

Ko Ko Lwin is expected to continue to Moscow next, underlining the regime’s reliance on China and Russia as its main energy partners.

Despite these moves, ordinary citizens remain burdened by blackouts and rising fuel costs, with little sign that the new deals will ease the pressure in the short term.

-2026-04-19