Myanmar and Japan have signed an agreement to build a 1250-megawatt liquefied natural gas power plant worth up to US$2 billion in Yangon’s Thilawa Special Economic Zone.
The Ministry of Electricity and Energy on July 24 granted a Notice to Proceed to Marubeni, Sumitomo Corp and Mitsui & Co to build the plant under a joint venture with a Myanmar Consortium consisting of local conglomerate Eden Group and the government.
The Notice to Proceed gives the group the green light to commence preliminary work for the plant, which will be built at the No.27, 28 and 29 terminals in Thilawa. The construction period is estimated to take 30 months.
A terminal for offloading LNG will be built at the same time to accommodate LNG imported from Singapore, Malaysia and Indonesia.
Power generation is targeted to commence within the next 72 months and will provide electricity to meet rising demand timely in the future, said Minister for Electricity and Energy U Win Khine.
He said the ministry will try to achieve a win-win situation during negotiations for the power purchase agreement and tariff calculation.
In early 2018, similar agreements were issued for the first three LNG power plants in Myanmar. The tender were awarded to Hong Kong’s VPower Group in October 2019. The three LNG plants, with a combined installed capacity of around 1000MW, are expected to generate the equivalent of around one-third of Myanmar’s existing energy capacity. Power purchase agreements for the plants, located in Thanlyin and Thaketa in Yangon and Kyaukphyu in Rakhine.
In May and June, the first LNG cargoes for the VPower plants were delivered to Myanmar by Malaysia’s Petronas.
To distribute the gas across Myanmar, a master plan for a nationwide gas pipeline plan will be drawn out and implemented in phases.-Translated