Myanmar: New import laws for LNG in the pipeline

Myanmar: New import laws for LNG in the pipeline

The Ministry of Electricity and Energy (MOEE) is going to draft new laws on
liquefied natural gas (LNG) in cooperation with the Myanmar Oil and Gas
Services Society (MOGSS) and Hluttaw but details of the draft are not known,
MOGSS vice-chair Daw Hnin Phyu Phyu Aung told The Myanmar Times.

"If the role and procedures for each ministry are included in the law and
rules, it will be more convenient," she said.

At a meeting on drafting the law, held by MOGSS at a hotel in Nay Pyi Taw on
Wednesday, MOEE Minister U Pe Zin Tun said, "There will surely be
opportunities for private businessmen to participate in LNG business.

This is inevitable."

The new Myanmar Investment Law and Rules has allowed private investment in
additional sectors such as Myanmar's oil and gas industry and electricity
distribution, he said.

Furthermore, there are now more opportunities for private businessmen to
compete in the storage and distribution of petroleum products, the minister
said.

"When the ministry considers energy matters, the right to choose should also
be taken into account. If energy policy is drawn up in compliance with
economic policy, it will be more beneficial to the nation's economy," Daw
Hnin Phyu Phyu Aung said.

The MOEE announced that it lost US$400 million in the electricity sector
during fiscal year 2016-17. To recover the losses, the ministry would have
to choose LNG as an option.

"Regarding LNG imports, people think it is very expensive to generate
electricity from gas. In reality, if we have a 20 or 30 year plan, if
electricity tariff for the industry increases to K150, then it can be sold
at a reasonable price. They can sell without losses," she said.

NLD secretary U Win Htein, who attended the meeting, said, "In some cases,
we have to subsidise due to the public interest. The government has a policy
to subsidise if appropriate; airlines and rail services have losses but they
cannot be stopped because of losses. In the public interest, it has to
continue to subsidise the electricity sector. But we have to reduce the
losses."

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Link to Original Article:
http://www.mmtimes.com/index.php/national-news/nay-pyi-taw/26343-new-import-
laws-for-lng-in-the-pipeline.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com