Bangkok-based PTT Exploration and Production PCL (PTTEP) is moving ahead with an integrated domestic gas to power project in Myanmar, after receiving exclusive development rights from the Myanmar government.
Phongsthorn Thavisin, chief executive officer of PTTEP, said that on December 30 the company signed a notice to proceed for the development of the project with U Than Zaw, permanent secretary of the Ministry of Electricity and Energy (MOEE).
It will promote the utilization of domestic gas supplied from PTTEP’s gas fields in the Gulf of Moattama, starting from Zawtika and Myanmar M3 projects, to generate affordable electricity for Myanmar.
“Today marks our first step in extending our business along the gas value chain in Myanmar, following the “execute and expand” strategy which will drive the company towards sustainable growth,” says Thavisin. “This project will also support Myanmar’s Sustainable Development Plan and its Energy Master Plan, which aims for all households to have access to electricity by 2030.”
The estimated investment is around US$2 billion, including upstream development projects, a 600MW combined-cycle power plant located in Kyaiklat in the Ayeyarwady Region, and a new offshore and onshore gas pipeline route across Kanbauk-Daw Nyein-Kyaiklat with a length of 370 kilometres. There will also be a transmission line from Kyaiklat to Hlaingtharyar.
PTTEP plans to make a final investment decision in early 2022.
The electricity generated from this project is expected to account for approximately 10% of Myanmar’s existing installed power plant capacity.
The power will be sold to the Electric Power Generation Enterprise, a state-owned entity under the MOEE, over a 20-year term with a five-year extension from the commercial operation date.