Page 36 - Oil&Gas-AustralAsia-2015-Issue-2
P. 36
M YANMAR
Myanmar’s local gas use slow to start as
exports earn record numbers
By Marie RYAN
The government is confident Myarmar’s infrastructure (the Sule Pagoda
in downtown Yangon pictured) will develop to use its allocated domestic
supply of 2 billion cubic metres of natural gas. Image courtesy of Paul Arps
The operator of the Myanmar-China It is estimated that a total of 12 billion Shwe, Yetagun and Zawtika gas fields is
gas pipeline project South East Asia Gas cubic metres of natural gas will be mainly exported to China and Thailand
Pipeline Company has said Myanmar is transported every year via the pipeline with the Shwe gas field beginning to
only buying around 200 million cubic to China and currently runs at a capaci- export to China last year.
metres of natural gas for local con- ty of 5.2 billion cubic metres. Myanmar’s abundant natural gas
sumption, although it is entitled to buy According to CNPC, both pipelines will resources, especially in prospective off-
as much as two billion cubic metres of start from Myanmar’s Kyaukryu and shore areas has attracted interest from
natural gas for domestic use. enter China at Ruili in Yunnan Prov- several companies coming from Britain,
An official from the company said they ince, with the gas pipeline extending Australia, Japan, Italy and India.
were supplying gas from four distri- across Yunnan, Guizhou, Chongqing, All companies respectively signed pro-
bution centres including Kyaukphyu, and Guangxi. duction sharing contracts with Myan-
Mandalay, Yenanchaung and Taungtha The Southeast Asia Gas Pipeline is mar’s government to explore oil and gas
for local demand. a joint venture between the China at blocks off Rakhine coast, Taninthayi
“The gas supply will increase later,” a National Petroleum Corp (CNPC) coast and Mottama-south Andaman
company spokesperson said. and Myanmar Oil and Gas Enterprise basin by the first quarter of last year.
The 793 kilometre Myanmar to China (MOGE) with the partnership estab- Statistics out of the country show
gas pipeline started gas transmission in lishing the Southeast Asia Oil Pipeline foreign investment in Myanmar’s oil
June 2013 and runs through Kyaukphyu Company in the past to run an oil and gas sector amounted to US$17.592
in Rakhine state to the Yunnan prov- pipeline. billion at the end of February this year,
ince of China. Reports from the company come as accounting for 32.53 per cent of the
The Taungtha distribution centre announcements from the Ministry of country’s total income, ranking it the
became operational this month and Commerce confirm that Myanmar’s oil second largest sector for foreign invest-
will be the main supply centre for the and natural gas exports earned a record ment after electric power. §
Myingyan power plant. US$4.6 billion in the 2014-15 fiscal year.
The gas produced from the Yadana,
A A34 OIL & GAS ustral SIA MAY/JUNE 2015 www.oilandgasaustralasia.com
Myanmar’s local gas use slow to start as
exports earn record numbers
By Marie RYAN
The government is confident Myarmar’s infrastructure (the Sule Pagoda
in downtown Yangon pictured) will develop to use its allocated domestic
supply of 2 billion cubic metres of natural gas. Image courtesy of Paul Arps
The operator of the Myanmar-China It is estimated that a total of 12 billion Shwe, Yetagun and Zawtika gas fields is
gas pipeline project South East Asia Gas cubic metres of natural gas will be mainly exported to China and Thailand
Pipeline Company has said Myanmar is transported every year via the pipeline with the Shwe gas field beginning to
only buying around 200 million cubic to China and currently runs at a capaci- export to China last year.
metres of natural gas for local con- ty of 5.2 billion cubic metres. Myanmar’s abundant natural gas
sumption, although it is entitled to buy According to CNPC, both pipelines will resources, especially in prospective off-
as much as two billion cubic metres of start from Myanmar’s Kyaukryu and shore areas has attracted interest from
natural gas for domestic use. enter China at Ruili in Yunnan Prov- several companies coming from Britain,
An official from the company said they ince, with the gas pipeline extending Australia, Japan, Italy and India.
were supplying gas from four distri- across Yunnan, Guizhou, Chongqing, All companies respectively signed pro-
bution centres including Kyaukphyu, and Guangxi. duction sharing contracts with Myan-
Mandalay, Yenanchaung and Taungtha The Southeast Asia Gas Pipeline is mar’s government to explore oil and gas
for local demand. a joint venture between the China at blocks off Rakhine coast, Taninthayi
“The gas supply will increase later,” a National Petroleum Corp (CNPC) coast and Mottama-south Andaman
company spokesperson said. and Myanmar Oil and Gas Enterprise basin by the first quarter of last year.
The 793 kilometre Myanmar to China (MOGE) with the partnership estab- Statistics out of the country show
gas pipeline started gas transmission in lishing the Southeast Asia Oil Pipeline foreign investment in Myanmar’s oil
June 2013 and runs through Kyaukphyu Company in the past to run an oil and gas sector amounted to US$17.592
in Rakhine state to the Yunnan prov- pipeline. billion at the end of February this year,
ince of China. Reports from the company come as accounting for 32.53 per cent of the
The Taungtha distribution centre announcements from the Ministry of country’s total income, ranking it the
became operational this month and Commerce confirm that Myanmar’s oil second largest sector for foreign invest-
will be the main supply centre for the and natural gas exports earned a record ment after electric power. §
Myingyan power plant. US$4.6 billion in the 2014-15 fiscal year.
The gas produced from the Yadana,
A A34 OIL & GAS ustral SIA MAY/JUNE 2015 www.oilandgasaustralasia.com
