The 2,800 km Sino-Myanmar pipeline is about to be operational. The gas lines are scheduled to be opened in July 2013. The parallel oil line is scheduled to open at the end of the year (2013).
The gas is to be pumped from offshore wells near Kyauk Phyu. The oil arriving from the Mid-East will be pumped into the pipeline from the deep water port at MaDay Island. China now will be able to get Mid-East oil without having to go through the Straits of Malacca. That means not having to go past Singapore.
Now for the million dollar question. Will the tankers traveling from Mid-East to Myanmar have to refuel. If they need to refuel then the only place that can occur is at Hambantota. Did the Rajapakses foresee this opportunity.?
I think Singapore is worried about peace and development in Sri Lanka and the loss of shipping and other business to Singapore. Former Prime Minister (1954-1990) Lee Kuan Yew whose family runs Singapore as their fiefdom has called Sri Lankan policies racist. That is quite a statement from LYK who has publicly said that Chinese are smarter than Indians/Malays and who runs a country that the Human Rights Watch says is a "Text Book" case of a Repressive State.
Background Info/Links on Sino-Myanmar pipeline
NY Times Article
Opposition to Pipeline