Myanmar Looks to Increase Gas Output

Myanmar is looking to increase domestic gas output but will need technological and financial assistance from global energy companies to do so, the country’s union minister for electricity and energy U Win Khaing said, reported  Myanmar Times May 23.

“Gas production will be a priority for the government over the next few years. However, we do not have the capital or the technology to do so. We need to co-operate with international oil and gas firms to produce the gas and in doing so make it available for the country as soon as possible,” he said. 

The government is hoping to make larger volumes of gas available for the local market, especially for power generation. The government is planning to import LNG to fill the existing supply-demand gap. Over the next two years, it is looking to double the gas-based power generation capacity to 6 GW, the newspaper reported.

At present Myanmar produces gas from the Shwe, Zawtika and Yadana offshore fields. However, according to the government, since 2016 output from these fields has been declining. According to the minister, new investments will be needed to revive production for which foreign investment will be required.

“We should be more flexible when negotiating contracts with international firms. The new contracts cannot be based on current terms and conditions, which are at least 20 years old. We are prepared to be more flexible with our terms, ensuring they align with current oil prices and global conditions. These new measures will bring investors back to the Myanmar oil and gas sector,” he said.

Myanmar is yet to hold bidding rounds for new onshore and offshore oil and gas blocks, Myanmar Times said.