Myanmar loses out on energy despite being major producer
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The Shwe Gas Project, located off the coast of Rakhine, produces 399 million cubic feet (mmcfd) of natural gas every day, of which only 17 million is used locally, while 379 million is exported to China, according to the second Myanmar Electric Power Conv
One of the issues discussed was the inadequate supply of energy in Myanmar, despite ample production, due huge volumes of gas export.
“Despite their lower contractual obligation, for instance, Total has said they would give 250 mmcfd though their commitment is only for 150 mmcfd. Perhaps, PTTEP and others could do the same,” Kyaw Kyaw Hlaing, managing director of Smart Electronic Group of Companies, said.
The Shwe Gas Project, initiated in 2004, began exporting gas this year.
“The Shwe Gas Project is expected to produce 500 million cubic feet of gas every day. Myanmar was to get 25 per cent or 100 million cubic feet, according to plan. However, daily production has yet to reach 500mmcfd, so it only gets 17 mmcfd,” an engineer said.
Similarly, the Yetagun Gas Project, initiated in 1992 and operational in 2000, produces 330 mmcfd, but does not have any local quota.
Among inland plots supervised by the Ministry of Oil and Gas Enterprise, their total output is around 63 mmcfd, all of which is consumed locally.
The total amount of natural gas produced inland and offshore in Myanmar is 2,058 mmcfd, of which 1,699 mmcfd is exported and 339 mmcfd is used locally.
“Only around 300 to 400 million cubic feet of gas is used locally. The country needs more than that, so it would be good if contracts with international firms can be adjusted,” Tin Maung Tun, senior project manager at Parami Energy Group, said.
