India is the sixth-largest energy importer, and its import growth rate is climbing faster than China's. Last month, India's oil minister publicly expressed his concerns that it is losing out to China in the race to ensure its energy security. Though subsequently disputed by other parties, the minister illustrated his point by announcing that Myanmar had awarded China the right to build a pipeline from two offshore gas fields in which Indian state-owned companies hold a 30% minority stake.
Regardless of the accuracy of the minister's remarks (or the poor transparency of the award process), Indian concerns about the success of Chinese investments in Myanmar's infrastructure and energy sectors are genuine. Chinese media have recently announced agreements to develop three offshore gas fields and to build a pipeline connecting the port of Sittwe with southwestern China.
This competition for regional influence and resources is shaping geostrategic perceptions in both China and India. India, which straddles the vital sea lanes linking the Persian Gulf to Asia, is concerned about a growing Chinese presence in the Indian Ocean and the Middle East.
