Pipelines will supply oil and gas to Myanmar for domestic consumption

Pipelines will supply oil and gas to Myanmar for domestic consumption

Some two million tonnes of oil and two billion cubic metres of gas will be
supplied annually for domestic use after the completion of Myanmar-China oil
and gas pipelines, the South East Asia Crude Oil Pipeline Co Ltd (SEAOP) and
the South East Asia Gas Pipeline Co Ltd (SEAGP) said in a statement.

Those oil and gas supply will support Myanmar's economic growth and improve
the livelihood of the people, it added.

Six companies are shareholders in the SEAGP: Chinese state-owned oil and gas
corporation China National Petroleum Corporation (CNPC), Myanma Oil and Gas
Enterprise (MOGE), Daewoo, Korea Gas Corporation (KOGAS), India-based ONGC
Co and India-based GAIL Co.

According to the agreement, no more than 20 percent of the total gas
production will be supplied for domestic use for the stations located in
Kyaukphyu, Yenangyaung, Taungtha and Mandalay.

The Myanmar-China Gas Pipeline commenced its operations in July, 2013 and
gas has been allocated for domestic consumption at those four stations since
April 2014. Gas pipeline is targeted to annually transport 5.2 billion cubic
metres of gas in phase one and 12 billion cubic metres of gas in phase two.

The Myanmar-China Crude Oil Pipeline began its operations on April 10 this
year and it aims to transport annually 12 million tonnes of oil in phase one
and 22 million tonnes of oil in phase two of the project.

The designated amount of oil production for domestic consumption is two
million tonnes per year. An oil jetty with a capacity of 300,000 tons which
can store 22 million tonnes of oil per year has been constructed.

The oil pipeline starts from Made island in the west of Myanmar and it
passes through two states, Rakhine State and Shan State, as well as two
regions, Magwe Region and Mandalay Region, before crossing the border to
Yunnan province in China.

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Link to Original Article:
http://www.mmtimes.com/index.php/business/26260-pipelines-will-supply-oil-an
d-gas-to-myanmar-for-domestic-consumption.html

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com