Yunnan Indo-Pacific Group and CNPC East China Design Institute will conduct the feasibility studies in co-orperation with local company Myanmar Chemical and Machinery Co.Ltd (MCM).
MCM last month asked for permission from the Ministry of Electricity and Energy (MOEE) to conduct the study for the refinery, which will have the capacity to process 8 million metric tonnes perannum (mmta) of oil, said U Nay Lynn and official from the MOEE and Dawei SEZ.
Investors from ASEAN, Europe and the Middle East have shown interest in building the oil refinery and many are keen to explore the project further by coming to Myanmar to visit the site despite COVID-19, said U Nyan Linn.
The project could include supporting infrastructure such as port. “They have to build the port so that oil tanker will be able to dock,” said U Tin Htoo Naing, secretary of the Dawei Special Economic Zone Committee.
“If the refinery is successfully completed and launched, it would lay a good foundation for energy security in the country. Fuel prices will also gradually fall,” said U Tin Htoo Naing.
Currently, Myanmar imports all its fuel needs, including petrol, diesel and jet fuel. According to the Myanmar Petroleum Trade Association, Myanmar imports some 600,000 tonnes of petroleum monthly.
The ministry of Electricity and Energy said in June that it is making plans to build one new refinery capable of processing up to 5 million tonnes of crude oil near the government’s Petrochemical Complex (Thabayarkan) in Magway Region.
There are currently just two oil refineries in Myanmar: No.1 Refinery (Thanlyin) in Yangon Region which was constructed in 1955 and No.2 Refinery (Chauk) in Magway Region which was constructed in 1954. The No.1 Refinery (Thanlyin) is now shut down as officials attempt to gauge its commercial viability. _ Translated.