MARKET DEVELOPMENT
Myanmar Approves $2.6b Refinery Project of Longwin Global Petro JV
Myanmar Approves $2.6b Refinery Project of Longwin Global Petro JV
25/04/2016 (DEALSTREETASIA) - Myanmar has approved a $2.6-billion investment by Longwin Global Petrochemical Co Ltd, a joint venture company, for the setting up of a five million MT oil refinery along with related logistics facilities in Tanintharyi region, located in the southern part of the country.
The project includes construction of the refinery, sales and production of petroleum products and storage and logistics facilities like storage farms and jetty.
China’s Guangdong Zehenrong Energy Co Ltd (GDZR), Union of Myanmar Economic Holdings Ltd (UMEHL) and an energy company under the Htoo Group of Companies form part of the consortium, according to a source familiar with the development.
The project will be located on a 733-acre patch UMEHL’s palm oil plot in Dawei district, Tanintharyi region.
The project has been under planning stage since 2010. Back in 2011, the MoU for the project was inked between GDZR and UMEHL, witnessed by former vice president Tin Aung Myint Oo and Jia Qinglin, chairman of CPPCC.
GDZR will also build the oil tank and jetty for the purposes of importing crude to feed the refinery.
Figures show that Myanmar’s current production of crude oil production is about 7500 barrels from both onshore and offshore wells, down from about 20,000 barrels per day back in the 80s.
The project’s supporting facilities include pipelines, gas filling facilities and chemical industrial zone.
The refined oil output, produced by the facility, will be used for exports to neighbouring countries as well.
The country currently has about 53 onshore oil blocks and 51 natural gas blocks. As of March 2016, China is the largest investor in Myanmar’s oil and gas sector, accounting for nearly 35 per cent of the total investment of $14.4 billion.
The project includes construction of the refinery, sales and production of petroleum products and storage and logistics facilities like storage farms and jetty.
China’s Guangdong Zehenrong Energy Co Ltd (GDZR), Union of Myanmar Economic Holdings Ltd (UMEHL) and an energy company under the Htoo Group of Companies form part of the consortium, according to a source familiar with the development.
The project will be located on a 733-acre patch UMEHL’s palm oil plot in Dawei district, Tanintharyi region.
The project has been under planning stage since 2010. Back in 2011, the MoU for the project was inked between GDZR and UMEHL, witnessed by former vice president Tin Aung Myint Oo and Jia Qinglin, chairman of CPPCC.
GDZR will also build the oil tank and jetty for the purposes of importing crude to feed the refinery.
Figures show that Myanmar’s current production of crude oil production is about 7500 barrels from both onshore and offshore wells, down from about 20,000 barrels per day back in the 80s.
The project’s supporting facilities include pipelines, gas filling facilities and chemical industrial zone.
The refined oil output, produced by the facility, will be used for exports to neighbouring countries as well.
The country currently has about 53 onshore oil blocks and 51 natural gas blocks. As of March 2016, China is the largest investor in Myanmar’s oil and gas sector, accounting for nearly 35 per cent of the total investment of $14.4 billion.