PTTEP Gets Greenlight for Gas-to-Power Project
Thailand's PTTEP has secured the exclusive right from Myanmar's government to develop a $2bn gas-to-power project in the country, it said on December 30.
The project involves the development of domestic upstream assets operated by PTTEP in the Gulf of Moattama, beginning with the Zawtika and Myanmar M3 projects. A 370-km offshore and onshore pipeline running from Kanbauk to Daw Nyein to Kyaiklat in Myanmar's Ayeyarwady region will also be built to carry their gas. In Kyaiklat, a 600-MW combined-cycle power plant will be erected, along with a transmission line to carry its electricity as far as Hlaingtharyar, the country's most populous township according to Wikipedia.
PTTEP CEO Phongsthorn Thavisin said the company had signed a notice to proceed with development with Myanmar's energy ministry. It is targeting a final investment decision in early 2022.
"Today marks our first step in extending our business along the gas value chain in Myanmar, following the “Execute & Expand” strategy which will drive the company towards sustainable growth," Thavisin said. "This project will also support the Myanmar’s Sustainable Development Plan (MSDP) and its Energy Master Plan, which aims for all households to have access to electricity by 2030."
The project's generation will be equal to 10% of Myanmar's current installed capacity, with electricity to be sold to state-owned Electric Power Generation Enterprise under a 20-year contract, with an option for a five-year extension.
Myanmar, which generates roughly half of its power from gas and half from hydroelectric dams, is looking to build 4 GW of LNG-to-power capacity to meet rising demand for electricity. In July it granted permission to a Japanese consortium to develop a 1.25-GW gas-fired station in the Thilawa region.