Myanmar: Gas export profits fall

Myanmar: Gas export profits fall

Myanmar has earned US$2.4 billion from natural gas exports until the end of
January this fiscal year, US$1.1 billion less than last year, according to
the Ministry of Commerce.

The last year's income from gas exports was US$3.5 billion, the ministry
said.

The gas exports represents about 60 per cent of Myanmar's export earnings
meaning it was vulnerable to the falling price of gas on the world market,
said Habib Rab from the World Bank.

"That is because the global market is oversupplied," added Habib.

Myanmar started exporting natural gas from Shwe Natural Gas Project off the
Rakhine coast to China in 2014.

Total, a French multinational integrated oil and gas company, is exporting
natural gas from the Yadana natural gas project to Thailand.

The Yadana, Yetagon, Zawtika and Shwe gas projects are expected to
collectively produce 515 billion cubic feet of natural gas for export and
160.6 billion cubic feet for domestic use this fiscal year, according to the
second five-year National Development Plan until 2021.

According to the plan's projections, the Yadana project will produce 206.2
billion cubic feet; Yetagon 73.4 billion cubic feet; Zawtika 89.4 billion
cubic feet and Shwe 146 billion cubic feet.

According to the Myanmar Oil and Gas Enterprise, gas production this fiscal
year will reach 689.8 billion cubic feet, including 14.2 billion cubic feet
from onshore blocks and 675.6 billion cubic feet offshore.

The Shwe gas field was discovered in 2005 and started production in 2014.

The Yadana gas field is operated by Total and exports 711 million cubic feet
to Thailand every day and distributes 119 million cubic feet for domestic
consumption. The Yadana gas field was discovered in 1982 and began
production in 1998.

The Yetagon gas field was discovered in 1992 and production began in 2000.
It exports 330 million cubic feet per day.

The Zawtika gas field was discovered in 1997 and production began in 2014.
It produces 353 million cubic feet per day and exports 279 cubic feet to
Thailand. Domestic consumption from the gas field is 64 million cubic feet
per day, according to 2014 data.

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Link to Original Article: http://www.elevenmyanmar.com/business/7725

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com