Gas turbine electrical power plant with twilight.

PTTEP approved to build gas-to-power plant in Myanmar

Myanmar has approved the development of an Integrated Domestic Gas to Power Project involving US$2 billion in investments in Kyaiklat, Ayeyarwady Region. The Ministry of Electricity and Energy granted a Notice to Proceed to Thai national oil company PTTEP for the 592-megawatt project, which will be carried out under a 20-year Build, Operate and Transfer basis. An option to extend for five years will also be included.

PTTEP will utilise gas produced domestically at its Zawtika and M3 gas fileds in the Gulf of Moattama to generate affordable electricity for Myanmar. The project, which is expected to be implemented in the first half of 2024, was approved in line with Myanmar’s Sustainable Development Plan and its Energy Master Plan, which aims for all households to have access to electricity 2030. Natural gas produced aat PTTEP’s fields will be transported via onshhore and offshore pipelines totalling 370km.

The pipelines will connect Kanbauk, Daw Nyein and Kyaiklat to two newly constructed gas receiving stations at the project site. The electricity generation from this project is expected to account for approximately 10 percent of Myanmar’s existing installed power plant capacity. The generated power will be sold to state-owned Electric Power Generation Enterprise. It will supply power to future projects around Yangon and Ayeyarwady regions while surplus energy will be fed to the national grid via a 230 KV transmission line from Kyaiklat to the Hlaing Tharyar substation. A final investment decision will be made by early next year.

Source: Myanmar Times


MIC permits 5 investment proposals including two 30 MW solar projects

The Myanmar Investment Commission (MIC), gave the green light to five new investment proposals including two 30 MW solar projects and approved the four existing projects for capital expansion, according to a video conference held on 30 December 2020. The permitted investments covered the energy, fishery, hotel and services sectors, with an estimated capital of US$138.178 million and K109.204 billion. The projects are expected to create over 4,000 job opportunities. According to the Ministry of Investment and Foreign Economic Relations, the new projects permitted by the MIC include two 30 MW solar power projects in Sagaing Region and a shrimp farm project in Taninthayi Region.

The solar power projects are in keeping with the commitment made by State Counsellor Daw Aung San Suu Kyi to tackle climate change in her address to the virtual Climate Ambition Summit held on 12 December 2020. In her statement, the State Counsellor announced Myanmar’s intention to submit its Nationally Determined Contribution (NDC) by the end of the year. The NDC will aim to reduce over 243 million tonnes of carbon dioxide by increasing the share of renewable energy to 39% and reducing the forestry sector’s net emission by 25%, the ministry stated. The Ministry of Electricity and Energy is implementing solar power plants by next summer to meet the country’s growing demand.

MIC and the relevant investment committees in the past three months (Oct-Dec) of the current financial year 2020-2021 gave the go-ahead to 19 foreign enterprises from China, Singapore, the Republic of Korea, Thailand, India and Viet Nam in manufacturing, livestock & fisheries and agriculture, energy and hotels and other services sectors. They brought in investments of over US$337.75 million, including the expansion of capital by existing enterprises. The foreign enterprises created over 11,000 jobs for locals.
The FDIs have flowed into 12 sectors. They are oil and gas, power, transport and communications, real estate, hotels and tourism, mining, livestock and fisheries, industrial estate, agriculture, construction, manufacturing and other services sectors. Of 51 foreign countries and regions investing in Myanmar, Singapore put the largest investments, followed by China and Hong Kong (SAR).

Source: The Global New Light of Myanmar


Muse-Mang Weing land border to open trial 24-hour service from 5 to 14 January 2021

Muse-Mang Weing land border will have 24-hour service between 5 and 14 January on a trial basis amid the strong COVID-19 safety measures. Myanmar primarily exported agricultural products and fisheries to China via the land border. The COVID-19 impacts triggered a trading halt. Among Myanmar-China land borders adjacent to Muse district, Mang Weing, Kyinsankyawt and Pansai (Kyu Kok) are open for trading between 6 am and 10 pm in line with COVID-19 health guidelines. However, trading hour limit caused delay and quality loss for perishable goods. It is almost a year that Myanmar found the first COVID-19 case. Following a friendly negotiation between a team led by Muse District head U Hlaing Soe Thant and the People’s Government of Ruili officials led by Mr Yang Shiyong on 2 January, trading hours through Muse-Mang Weing will be extended to 24 hours between 5 and 14 January on a trial basis. The two countries are responsible for the drivers to follow the health guidelines, and China continues imposing a driver substitution rule.

Myanmar’s fisheries and agricultural products can be quickly delivered to China. If the coronavirus preventive measures are successful during the trial period, trading will return to normal. Furthermore, other land borders such as Kyinsankyawt and Pansai (Kyu Kok) are also set to extend trading hours, according to the coordination meeting. At present, Nandaw and Manhero areas which were mostly crowded with people have been closed. Moreover, Sinphyu land border was also shut down for freight lorries. As a result of this, the authorities concerned from both sides negotiated the Sinphyu land border’s reopening later. At present, around 150 lorries can enter Mang Weing checkpoint per day. About 250 lorries are expected to pass the crossing upon 24-hour service, Muse Highway Freight Forwarders Association stated. The trade value through Muse border plunged to US$785.6 million between 1 October and 18 December of the current financial year 2020-2021 because of the impacts caused by the COVID-19 preventive measures.

According to the Ministry of Commerce, the figures reflected a decrease of $468 million compared to the corresponding period of the previous FY. Muse is an important border in Myanmar and handles the largest volume of trade. But at times, it has experienced a sharp drop in trade on account of China clamping down on illegal goods, resulting in a halt in the trade of agricultural products. Moreover, the COVID-19 impacts slow the business this year. Following the COVID-19 consequences, trading via Muse did not reach a monthly target of above $400 million in the previous months last FY. Myanmar intended to reach trade target of over $5 billion through Muse for the last 2019-2020FY; however, only $4.86 billion worth goods were traded. Border trade values at Muse stood at $5.4 billion in the 2016-2017FY, $5.8 billion in the 2017-2018FY and $4.9 billion in the 2018-2019FY respectively, as per data of the Commerce’s Ministry.

In a bid to contain the spread of coronavirus in the border, China banned border crossing. Shortly after that, about 50 drivers are allowed to pass the border under driver substitution system. Those drivers are, however, tested every three days. As a result of this, China included them in the vaccination programme, covering 41 Myanmar lorry drivers so far, said U Min Thein, vice-chair of Muse rice wholesale centre. Myanmar exports agricultural products, including rice, beans and corns, and fishery products such as crab, prawn, etc. Furthermore, Myanmar’s natural gas export to China is also conducted through Muse-Ruili border. The raw CMP materials, electrical appliance and consumer goods are imported into the country.

Source: The Global New Light of Myanmar