- Origin |
- By Aung Shin,Htoo Thant | Friday, 29 May 2015
Japan's Marubeni Corporation will conduct a feasibility study on a US$1 billion gas-fired power plant in Thanlyin township, after signing a memorandum of understanding with the Ministry of Electric Power on May 27.
The firm is part of a consortium also including Global Power Synergy from Thailand and Myanmar’s Eden Group. The partners are to spend the next nine months conducting the study for the 400-megawatt plant.
The gas-fired plant would be the largest in Myanmar, distributing electricity to the Thilawa special economic zone and the national grid, a press release said.
Gas-fired plants have emerged as a favourite generation method, as popular criticism against coal and hydro makes them difficult to implement.
Several of the companies involved in the Thanlyin power plant are involved in other parts of the energy sector in Myanmar.
Marubeni has experience constructing hydro and thermal power plants in the country. The Japanese company is also conducting a feasibility study for a coal-fired power plant in the south of the country. Its planned coal-fired plant in Tanintharyi Region’s Myeik township will have a capacity of between 1800 and 2000MW. The $2.5 billion project will be completed by a consortium including Global Power Synergy, EGAT International and Sri Synergy from Thailand and local firm Ayeyar Hintha.
Global Power Synergy is the affiliate company of Thailand’s state-owned PTT, which is one of the final candidates for the Thanlyin refinery joint venture tender. This gas refinery is going to be supplied from future offshore fields, according to U Chit Khaing, managing director of Eden Group.
“The current agreement is only for a feasibility study, but we believe in the project’s possibility,” he said.
“We are expecting gas supplies from M-3 and M-2, which are new offshore discoveries.”
PTT is the operator of M-3 and Eden Group has a share of M-2, which is operated by PetroVietnam. The two blocks could begin commercial production by as early as 2018, according to the Ministry of Energy.
The Ministry of Electric Power has also been planning another major gas-fired power plant for Myingyan, near Mandalay. Singapore-based Sembcorp Industries won the right to develop and operate the 225MW plant, with a price tag of $300 million.
The ministry has planned a number of new projects to meet the rapidly growing demand for electricity, which is climbing by 13 to 15pc a year.
Six privately run gas-fired power plants in the Yangon area started operation in 2013.
Myanmar currently has 43 running power stations with installed capacity of 4987MW, of which 29pc comes from gas-fired plants.
Still, electricity demand is expect to grow significantly as the country develops.
The Ministry of Electric Power has estimated there will be a need to generate 23,594MW for the whole country’s demand by 2030.
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