Myanmar asks PTT for help in upgrading old refinery
The Myanmar government has approached PTT group to help upgrade an old oil refinery, which has a capacity of 50,000-70,000 barrels per day.
Meanwhile, Thailand’s Neighbouring Countries Economic Development Cooperation Agency (Neda) will consider granting a soft loan of Bt1 billion to Myanmar’s government as part of its request for assistance in installing power-transmission lines between Ye and Dawei to ensure national electricity security.
Thai Oil chief executive officer Veerasak Kositpaisal said Myanmar wanted PTT Group to help improve an outdated refinery. PTT will consider assigning Thai Oil to invest in the project, pending approval of the Myanmar government.
Myanmar has experienced economic growth and rising demand for oil products, but this demand is still relatively low. Given that fact, Sarun Rungkasiri, PTT senior executive vice president for oil business, said PTT had proposed to Myanmar that during the initial phase, a terminal for refined oil should be set up first. Once demand increases, the new refinery should be established.
He added that Myanmar had yet to make a decision on the PTT proposal.
Meanwhile, Neda will consider a soft loan for the Ye-Dawei power-transmission system.
Neda president Acksiri Buranasiri said the agency’s board had considered a soft loan with a 1.5-per-cent interest rate and 30-year repayment term for financing the installation of 115-kilovolt transmission lines from Ye to Dawei. The loan’s amount is expected to be at least Bt1 billion.
The transmission-line project is to serve both households in the areas and the development of the Dawei industrial zone to be jointly operated by Thailand and Myanmar.
Neda will also join with the Provincial Electricity Authority (PEA) to conduct a feasibility study on designing a project to improve the electricity system in North Okkalapa and North Dagon townships of Yangon.
ROAD CONSTRUCTION
Recently Neda granted a 30-year soft loan of Bt1 billion to Myanmar to finance the construction of a road between Myawadee and the Thai border town of Mae Sot.
PEA governor Namchai Lorwattanatraku said Myanmar needed help from Thailand to improve the electricity system, especially in North Okklapa and North Dagon, which have experienced insufficient power supply. The complete feasibility study on improving the power system in Yangon will take six months.
The PEA is hopeful that this project will pave the way for it to provide similar assistance to other neighbouring countries.
