Approval Of Offshore Supply Bases
An important development in 2017 has been the Myanmar Investment Commission’s (MIC’s) approval of offshore supply bases (OSB). A domestic offshore supply base would make supplies for drilling activities cheaper, available within a shorter time, and quicker, in terms of assuring an easier customs clearance - thereby successfully addressing the needs of its own offshore operators. While previously it was projected that Myanmar would need two or three offshore supply bases, last year, the MIC provided a series of permits for up to six OSB projects, some of which are likely to become operational as early as 2020.
LNG Imports To Address Energy Gaps
Myanmar’s government has announced that LNG imports will be used to address energy gaps before new domestic gas comes online. According to an MOEE official, domestic gas will continue to be an export item used to secure foreign exchange, while liquefied natural gas will help meet the growing electricity needs in the country, reversing what was earlier reiterated by the ministry: that local needs must be prioritised in new field developments. In the short term and medium term, Myanmar has to rely on its gas power plants to meet the growing electricity demand. Securing gas for electricity generation has been a formidable challenge that could possibly be solved by the recent establishment of LNG import schemes.
Industry Giants Reaffirmed Its Commitments To The Oil & Gas Industry In Myanmar
In mid- and late-2018, we are likely to see activity from the toughest in the industry. PTT Exploration and Production (PTTEP) has reaffirmed its commitment to the oil and gas sector in Myanmar, although it conceded that there are challenges related to exploration in the frontier. PTTEP is expected to begin exploration work at M-9 and M-11 offshore fields this year. The company said that there are challenges associated with the identification of an economical and efficient method to bring the gas online, and that it can only be done through an effective combination of innovative technologies and people. Another foreign entity, Malaysian state-owned oil company Petronas, said that it will commence drilling wells in M-12, M-13 and M-14 in Tanintharyi Region during the last quarter of this year. MPRL E&P, a local independent oil and gas company, has also introduced three options for its A-6 block, having made successive discoveries over the last few years.
Strong LPG Movement
Elite Petrochemical Co launched its Liquefied Petroleum Gas (LPG) Terminal and Port Facility at the Thilawa Special Economic Zone on Saturday. The terminal is the first private sector-led LPG investment open for business in the country. The launch comes at a time when the government is encouraging the private sector to invest in the import and distribution of LPG as a clean alternative to electricity for cooking. LPG is a byproduct from the refining of petroleum. Among the other companies involved in importing and distributing LPG are Parami Energy Group, which last year won a K6.5 billion government tender to lease a jetty and storage facility at the Thanlyin refinery in Yangon Region. Once ready, the facility could add up to 20,000 tonnes of LPG to the Myanmar market. Last month, Asia AVA Gas Company, a Myanmar-Singapore joint venture, said it would partner the Myanmar Petroleum Enterprise (MPE)to undertake a $60 million project enabling the import, storage and distribution of LPG in Myanmar.The project will include construction of a jetty, storage tanks, loading and unloading facilities and a gas-filing plant across 32 acres of land near Bogyoke Village, which is also in Thalyin township.
"Myanmar has granted nearly 600 LPG licences to a range of commercial businesses and 15 LPG filling stations across Myanmar." – The Myanmar Times, 21 May 2018