No profits from Myanmar-China gas pipeline: deputy minister

No profits from Myanmar-China gas pipeline: deputy minister

No profits have been made yet from the Myanmar-China natural gas pipeline
project, which sends gas to China from offshore deposits in Rakhine State,
while Chinese loan for the project is still being paid, said deputy minister
for electric power and energy Dr Tun Naing.

State MP Nang Kham Aye for Namatu Township questioned the deputy minister on
June 26 in the Shan State parliament on how much revenue and profits have
been made each year from Myanmar's annual exports of 12 billion cubic feet
of gas from the Rakhine to China.

The deputy minister said the 793-kilometre Southeast Asia Natural Gas
Pipeline passes through Rakhine State, Magway Region, Mandalay Region and
Shan State to export natural gas from the Shwe gas project, and it's jointly
owned and run by companies from China, South Korea, India, and Myanmar.

He also said two Chinese companies - CNPC and ONGC - control more than 58
per cent of the project, while the Myanma Oil and Natural Gas Enterprise
owns just 7.36 per cent.

"The pipeline project generated more than US$121 million between the 2013-14
and 2016-17 fiscal years, and the earnings have already been transferred to
the Union government's funds. It began with a loan of 86.16 million euros
from the China Development Bank and took about three years to complete. The
loan with accumulated interest is still being paid up," the deputy minister
said.

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Link to Original Article: http://www.elevenmyanmar.com/local/10264

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com