Bloomberg: Myanmar as Economic Miracle Hinges on Natural Gas Bounty

Myanmar’s opening to foreign investment has been compared to the fall of the Berlin Wall and the start of an economic growth story to emulate Vietnam. How those views pan out will be largely decided by natural gas.

Exxon Mobil Corp, Woodside Petroleum and Oil India are among 59 global energy companies lining up for a share of Myanmar’s estimated $75 billion bounty of the fuel, according to the country’s energy ministry. While oil and gas have been pumped for decades, investment largely dried up during almost five decades of military rule that ended in 2012.

Wedged between energy-hungry China and India, Myanmar needs more investment to explore its gas potential. Energy and industries such as agriculture need a combined $320 billion through 2030 to help the economy achieve 8 percent annual growth, a report last week by McKinsey Global Institute forecast.

“People see Myanmar as a frontier market,” Melinda Tun, a senior associate at law firm Baker & McKenzie, said in a June 4 phone interview in Sydney. “If you can get a first-mover advantage you could be well set for years to come. It sits between the two most populous economies in the world.” MORE