India wants to build a US$6 billion oil refinery in Thanlyin, Yangon, to rival China’s investment in Myanmar’s energy sector, according to India’s Foreign Secretary Harsh Shringla and India Army Chief MM Naravane during their joint visit to Myanmar this week, India media have reported. Myanmar has yet to confirm or announce the proposal. Under a Memorandum of Understanding between Myanmar and India signed during President U Win Myint’s trip to India in Februray, the two governments had agreed to advance cooperation in the sector.
The two governments are discussing possibilities to cooperate in the downstream oil and gas sector in Myanmar. The MOEE is now also negotiating terms to purchase power to purchase power from India via cross border transmission following a bilateral meeting held on September 3 between the relevant ministries and officials, including Indian Ambassador to Myanmar Mr. Saurabh Kumar. India is raising efforts to promote its presence in Myanmar energy under its Look East and Neighbors First policies even as China expands investments in the downstream sector.
Several Chinese companies have shown interest to invest in building large oil refinery projects at the Dawei Special Economic Zone in Thanintharyi Region. China-based Yunnan Indo-Pacific Group Zhongan and CNPC East China Design Institute have purposed field surveys for a large-scale oil refinery project in the SEZ which can refine 8 million tonnes of oil a year. Meanwhile, Hong Kong New Energy Investment Holdings Limited, China Huanqiun Contracting and Engineering Co., Ltd, China Petroleun Pipeline Engineering Co., Ltd and China Energy Engineering Corporation are also interesting in building an oil refinery in Myanmar and have submitted proposals to the MOEE.
Source: Myanmar Times