Residents raise environmental concerns over suspected leak at Kyaukphyu oil terminal

By Admin 30 Jun 2026

DMG Newsroom

30 June 2026, Kyaukphyu

Residents of Maday Island in Kyaukphyu Township, Arakan State, have raised concerns over suspected industrial leakage and chemical odors from a Chinese-backed oil terminal, according to local residents and monitoring groups on Tuesday.

Residents said a strong chemical smell resembling ammonia, along with dark wastewater discharge, was first noticed during the first week of June.

Although the facility operators have reportedly sent heavy machinery to the area, residents said authorities have not publicly explained the cause of the suspected leak or provided information about possible environmental impacts.

"The chemical smell has continued for nearly a month, and workers are using excavators to dig around underground areas," a worker from the Maday Island industrial zone said. "The area has been restricted by security personnel, preventing outsiders from observing the situation."

Local monitoring groups said the affected area has been placed under strict control, with excavation and cleanup activities reportedly carried out mainly at night.

Residents said dark oil-like waste has entered nearby waterways, affecting local fishing activities around the island.

"Black residue can be seen floating in the waterways," a resident said. "Security personnel have blocked access to coastal areas near the terminal. When local leaders ask about the issue, officials do not provide clear answers."

The restrictions have affected dozens of fishermen who depend on fishing and shrimp harvesting for their livelihoods.

Community groups warned that the incident could be linked to damage in oil and gas infrastructure or related facilities, potentially threatening the state’s marine and mangrove ecosystems.

A Kyaukphyu-based civic analyst said authorities should conduct independent environmental testing to determine whether the discharge contains harmful substances.

"Maday Island is connected to the Thanzit River, which is important to the Kyaukphyu area," the analyst said. "Independent testing is needed to assess the level of contamination and possible risks."

The Maday Island energy complex includes a deep-sea port, oil storage facilities, and pipelines transporting crude oil and natural gas from Myanmar to China.

The energy corridor began operations after construction started in 2010. Local advocacy groups have repeatedly criticized the lack of transparency over environmental assessments and waste management practices linked to the project.

According to a data analysis released by Arakan Oil Watch (AOW) in April 2025, the bilateral oil and gas pipeline network generates around US$7 billion in annual export revenue, while Myanmar’s military junta receives more than US$500 million annually through transit fees and related income.