Technical Assistance Consultant’s Report
Project Number: 46389-001 2016
Republic of the Union of Myanmar: Institutional Strengthening of National Energy Management Committee in Energy Policy and Planning (Financed by the Japan Fund for Poverty Reduction and the Technical Assistance Special Fund)
FINAL REPORT
Prepared by TA 8356-MYA, Morten Sondergaard, U Soe Myint and Stuart Thorcarft, Consultants, International Institute for Energy Conservation and Duy-Thanh Bui, Principal Energy Economist and Hyunjung Lee, Energy Economist both from ADB.
For the Ministry of Electricity & Energy (MOEE)
This consultant’s report does not necessarily reflect the views of ADB or the Government concerned, and ADB and the Government cannot be held liable for its contents. All the views expressed herein may not be incorporated into the proprosed project’s design.
Asian Development Bank
“Myanmar - Energy Sector Assessment 2016”
TA-8356 MYA: Institutional Strengthening of National Energy Management Committee in Energy Policy and Planning
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TA-8356 MYA: Myanmar – Energy Sector Assessment, November 2016
Foreword ...... Error! Bookmark not defined. Acknowledgments ...... Error! Bookmark not defined. Weights and Measures ...... 6 Currency Equivalents ...... 6 Abbreviations ...... 7 1. OVERVIEW OF THE ENERGY SECTOR ...... 9 1.1 Energy resources and use ...... 9 2.1 Policy and reform program...... 13 2.2 Institutional structure and governance ...... 14 2 OIL and GAS SECTOR ...... 16 3.1 Oil and gas reserves, production and utilization ...... 16 3.2 Arrangements for managing oil and gas ...... 24 3.3 Oil and gas prices ...... 30 3.4 Oil and gas legislation ...... 33 3.5 Oil and gas pipelines ...... 35 3 COAL SECTOR ...... 37 4.1 Coal reserves, production, and utilization ...... 37 4.2 Coal institutional arrangements...... 38 4.3 Coal prices...... 39 4.4 Coal legislation ...... 39 4.5 Immediate issues for the coal sector ...... 39 4 RENEWABLE ENERGY...... 39 5.1 Hydro ...... 40 5.2 Solar ...... 41 5.3 Wind ...... 41 5.4 Biomass ...... 42 5.5 Geothermal ...... 45 5.6 Immediate issues for renewable energy ...... 45 5 POWER SECTOR ...... 46 6.1 Electricity production and use ...... 46 6.2 Generation facilities—fossil based ...... 48 6.3 Generation facilities—hydropower ...... 48 6.4 Transmission network ...... 49 6.5 Distribution network ...... 50 6.6 Power sector institutional arrangements ...... 53 2 | P a g e
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6.7 Electricity tariffs ...... 55 6.8 Electricity legislation ...... 57 6.9 Immediate issues for the power sector ...... 58 6 ENERGY EFFICIENCY ...... 59 7.1 Immediate issues for energy efficiency and conservation ...... 62 7 CLIMATE CHANGE ...... 62 APPENDIXES ...... 64 A. Oil and Gas ...... 64 B. Coal ...... 71 C. Renewable Energy ...... 75 D. Power ...... 78 E. Myanmar Energy Balance Table, 2014/15 ...... 81
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INDEX TABLES Table 1 Total Primary Energy Supply in KTOE; 2011-2015 ...... 11 Table 2 Total Primary Energy Consumption in KTOE; 2011-2015 ...... 12 Table 3 Daily oil and on-shore gas production by field, August 2014 ...... 22 Table 4 Natural Gas and Condensate Production, Export from Off-shore Field, ...... 23 Table 5 Onshore blocks and awarded to companies ...... 24 Table 6 Offshore blocks and awarded to companies ...... 25 Table 7 MOGE's stakes in offshore gas fields and pipeline companies; 2014 ...... 26 Table 8 Refineries in Myanmar in 2013 ...... 27 Table 9 MPPE and private retail outlets (as of July 2014) ...... 28 Table 10 Transfer prices from MPE to MPPE and sales prices from MPPE to consumers; November 2014 ...... 31 Table 11 MOGE's scheme of gas prices as purchased from different operators; 2014 ... Error! Bookmark not defined. Table 12 MOGE’s scheme of gas prices as sold to different consumers; 2014 ...... Error! Bookmark not defined. Table 13 MOGE’s scheme of gas prices as sold to different consumers; September 2014 .. 31 Table 14 MOGE's total incomes from sales / export of off shore gas in the period 1998 – June 2014 ...... 32 Table 15 MOGE’s gas losses due to leakage and flaring ...... 36 Table 16 Gas and crude oil pipeline systems, 2013 ...... 36 Table 17 Trans-border gas and crude pipeline systems in Myanmar, 2013 ...... 36 Table 18 Gas transmission through the Myanmar–PRC gas pipeline; June–September 2014 ...... 37 Table 19 Existing biogas digesters (lighting/cooking), 2013 ...... 42 Table 20 Bioethanol production facilities in Myanmar, 2014 ...... 44 Table 21 Geothermal resources in Myanmar, 2008 ...... 45 Table 22 Power plants with generation based on coal, gas and diesel—up to September 2016 ...... Error! Bookmark not defined. Table 23 Power plants with generation based on hydropower—up to September 2016 . Error! Bookmark not defined. Table 24 Potential new large hydropower projects by states and regions—2012 ...... Error! Bookmark not defined. Table 25 Existing transmission lines, 2013 ...... 49 Table 26 Transmission losses, 2013 ...... 50 Table 27 Existing transmission lines, 2013 ...... 50 Table 28 Distribution losses ...... 51 Table 29 Electricity consumption in States/regions: April 2013–March 2014 ...... 52 Table 30 Electricity tariff; October 2012 and April 2014 ...... 57
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INDEX FIGURES Figure 1 Total Primary Energy Production in KTOE; 2000-2015 ...... 10 Figure 2 Primary energy supply in KTOE; 2000-2015 ...... 11 Figure 3 Primary energy consumption in KTOE; 2000-2015...... 12 Figure 5 Location map of oil and gas fields in sedimentary basins of Myanmar...... 17 Figure 6 Onshore Myanmar oil production in thousands barrels per month; 1961–2014 ...... 18 Figure 7 Final consumption of petroleum products in KTOE; FY2005–2015 ...... 19 Figure 8 Graphic Presentation of Gas Resources of Myanmar (in BCF) ...... 19 Figure 9 Recoverable Gas Resources of Operating Fields ...... 20 Figure 10 Natural Gas Production History in Myanmar ...... 20 Figure 11 Domestic sectoral gas consumption pattern; 2013 ...... 21 Figure 12 Myanmar gas production in MMCF per month; 1995–2014 ...... 22 Figure 13 Total Import of gasoline/diesel oil to Myanmar, thousand tons; FY2005–2013 ..... 27 Figure 14 Annual sales of gasoline, diesel, and aviation turbine fuel; FY2002–2014 ...... 29 Figure 15 Price setting of domestic produced petroleum product, 2014 ...... 30 Figure 16 Distribution of Gas Sales Proceeds from gas field to buyer ...... 32 Figure 17 Coal production in Myanmar, Thousands tons; FY2001–FY2015 ...... 38 Figure 18 Electricity installed capacity in MW, FY2001–FY2015 ...... 47 Figure 19 Electricity generation by source in GWh, FY2001–FY2015 ...... 47 Figure 20 Satellite photograph of Myanmar at night time 1992 and 2010 ...... 52 Figure 21 Organization and functions of the Ministry of Electric Power (Before April 2016) .. 54 Figure 22 System and structure of electricity prices setting in Myanmar ...... 56
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Weights and Measures bbl - barrel bcf - billion cubic feet bcm - billion cubic bodp - barrels of oil per day ft3 - cubic feet GWh - gigawatt-hour ha - hectare Hz - hertz km - kilometer km2 - square kilometer ktoe - thousand tons of oil equivalent kV - kilovolt kVA - kilovolt ampere kW - kilowatt kWh - kilowatt-hour MCF - thousand cubic feet MMbbl - million barrel MMCFD - million cubic feet per day MMCF - million cubic feet of gas mmscf - Million standard cubic feet MTD - Metric time per day MTOE - million tons of oil equivalent MTPY - Metric Tons Per Year MW - megawatt MWh - megawatt-hour MVA - million volt-ampere TCF - trillion cubic feet
Currency Equivalents
(As of 31 April 2017)
Currency Unit = Myanmar kyat (MK) MK1.00 = $0.00077551 $1.00 = MK1,289.47
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Abbreviations
ADB - Asian Development Bank AFOC - ASEAN Forum on Coal ASEAN - Association of Southeast Asian Nations ASR - Sector assessment, strategy and roadmap ATF - aviation turbine fuel BOT – build-operate-transfer CNG - compressed natural gas CNPC - China National Petroleum Corporation CO2 - carbon dioxide CPS - Country partnership strategy CSR - corporate social responsibility DEP - Department of Electric Power DHPI - Department of Hydropower Implementation DHPP - Department of Hydropower Planning DMO - domestic market obligation E & P - exploration and production EDC - Energy Development Committee EE - energy efficiency EE&C - energy efficiency and conservation EPD – Energy Planning Department EIA - Environmental Impact Assessment EITI - Extractive Industries Transparency Initiative EMP - Energy Master Plan ERC - Electricity Regulatory Commission ESE - Electricity Supply Enterprise FDI - foreign direct investment GDP - gross domestic product GMS - Greater Mekong Subregion HPGE- Hydropower Generation Enterprise HPP - hydropower plant IEA - International Energy Agency IFC - International Finance Corporation IPP - independent power producer JICA - Japan International Cooperation Agency JV - joint venture JVA - joint venture agreement LPG - liquefied petroleum gas MGS - Myanmar Geoscience Society MEPE- Myanmar Electric Power Enterprise MES - Myanmar Engineering Society MESB – Myanmar Electricity Supply Board MIC - Myanmar Investment Commission MOAI- Ministry of Agriculture and Irrigation MOE- Ministry of Energy MOEE - Ministry of Electricity and Energy MOECAF - Ministry of Environmental Conservation and Forestry MOEP- Ministry of Electric Power MOF - Ministry of Forestry MOGE- Myanmar Oil and Gas Enterprise MOI - Ministry of Industry MOLFARD - Ministry of Livestock, Fishery and Rural Development MOM - Ministry of Mines
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MOPS - Mean of Platts Singapore market MOST - Ministry of Science and Technology MOU - memorandum of understanding MPE - Myanmar Petrochemical Enterprise MPPE - Myanmar Petroleum Products Enterprise NCEA - National Commission for Environmental Affairs NEDO - New Energy and Industrial Technology Development Organization NEMC - National Energy Management Committee PRC - People’s Republic of China PSC - production sharing contract PTTEP - PTT Exploration and Production Public Company Limited PV - photovoltaic R & D - research and development RON - Research Octane Number SPP - small power producer UNFCCC - United Nations Framework Convention on Climate Change UNCITRAL - United Nations Commission on International Trade Law VSPP - very small power producer WB - World Bank YESC - Yangon City Electricity Supply Corporation
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1. OVERVIEW OF THE ENERGY SECTOR 1.1 Energy resources and use
1. Myanmar is a large country with a land area of 676,577 square kilometres (km2) with population estimated at 52.91 million in 2016. 1 Having significant fertile land and water reserves, Myanmar has great agricultural potential. The country also has energy resources including oil, gas and hydropower, which could be developed. Myanmar lies between oriental and occidental Asia at the intersection of three important economic corridors of Asia: South Asia, the People’s Republic of China (PRC) and Southeast Asia.
2. Since 2011, Myanmar has been undergoing a process of reform. Among economic reforms, new land and foreign investment laws have been introduced to address issues fundamental to development. In response to the reforms, especially those concerning democratic representation, economic sanctions are now being lifted or eased. This opens the possibility of extensive international assistance for Myanmar’s energy sector. The reforms have stimulated economic development and led to an increase in growth of gross domestic product (GDP) from less than 5% prior to 2011 to more than 7% during 2012-2015 and 6.4% in 2016. 2 Despite the improved economic performance, per capita GDP remains low.
3. Myanmar has abundant energy resources, particularly hydropower and natural gas. The hydropower potential of the country’s rivers, which drain the four main basins of the Ayeyarwaddy, Chindwin, Thanlwin and Sittaung, is estimated to be more than 100,000 megawatts (MW) installed capacity potential. Myanmar has identified 92 large hydropower potential projects with a total installed capacity of 46,000 MW. Peak load reached 2,500 MW in 2016. Peak demand is limited by supplies that can be delivered by power stations which are subject to operational limits. One limitation is that generation from hydropower becomes limited during the dry season corresponding to potential reductions of in capacity of up to 400- 500 MW.
4. Myanmar’s proven gas reserves total 10.3 trillion cubic feet (TCF) as of September 2014, with huge potential for further discoveries and offshore gas is the country’s most important source of export revenues. Myanmar has become one of the five major energy exporters in the region. The daily oil production is about 20,000 barrels per day (8,000 barrels of crude oil from onshore and about 12,000 barrels of condensate from an offshore field), which supplies around 30% of domestic consumption as of 2013. Some 550 coal occurrences have been identified in Myanmar, although many of them are of minor importance and in various qualities. At present half of the production is used at one minor coal-fired power plant with the balance used in the cement and steel industries.
5. Primary energy production. The total primary energy production (TPEP) in 2014 was 25.4 million tons of oil equivalent (MTOE). Natural gas makes up about 53%, followed by biomass (40%) and the remaining 7% consisting of hydro, oil and coal. As Figure 1 shows, TPEP is increased over the years starting from 11.5 MTOE. Gas production experienced rapid growth between 2000 and 2006 and again in 2014/15 with an overall increase of 4 times in volume. Biomass production has grown by 37% over the period from 2000 to 2015. Hydropower production, while being a relatively minor component, had steady growth with a fourfold increase during the same period. Coal production experienced a peak in 2006 but has subsequently decreased.
1 ADB. 2017. Basic 2017 Statistics. Manila 2 ADB. 2017. Asian Development Outlook 2017. Manila 10 | P a g e
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Figure 1 Total Primary Energy Production in KTOE; 2000-2015
30,000 Biomass
25,000
Hydro 20,000
15,000 Natural Gas 10,000 Energy Production(ktoe)
5,000 Crude Oil
0 Coal and Lignite
Source: Ministry of Electricity and Energy, 2015
6. Primary energy supply and primary energy consumption. Biomass is the country’s most dominant primary energy source, followed by oil, hydropower, gas and coal. By comparison in 2001, the country’s total primary energy supply was recorded to be 11.8 MTOE with about two-thirds (7.8 MTOE) of energy supply being from biomass, followed by 16.8% (2.0 MTOE) from oil and 10.2% (1.2 MTOE) from gas. Hydropower and coal accounted only for a small share (6.2% and 0.7%, respectively). However, these proportions have changed — especially in the last decade. In 2015, the total primary energy supply has increased by 71% compared to 2001. In 2015, the biomass share was 50.0% (10.0 MTOE) of the primary supply, followed by 12.0% for gas (2.4 MTOE) and 16.8% (3.4 MTOE) for hydro, whose share has significantly increased due to the commissioning of several hydro power plants. In 2015, coal accounted for 1.65% (0.33 MTOE). Figure 2 shows the total primary energy supply. Figure 3 provides corresponding information about the development in primary energy consumption in Myanmar from FY2001 to FY2015. The influence of natural gas exports increased significant in the latter part of the period.
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Figure 2 Primary energy supply in KTOE; 2000-2015
25,000
20,000
15,000 Biomass (wood) Coal and Lignite Hydro 10,000 Natural Gas
Total Energy Supply(ktoe) Petroleum Products 5,000
0
Source: Ministry of Electricity and Energy, 2015
Table 1 Total Primary Energy Supply in KTOE; 2011-2015
2011-12 2012-13 2013-14 2014-15
OIL 3,348 2,765 2,974 3,932 GAS 1,561 2,060 2,502 2,433 HYDRO 2,901 2,986 3,343 3,395 COAL 474 475 322 333 BIOMASS 9,506 9,708 9,338 10,069 TOTAL 17,790 17,994 18,479 20,163 Source: Ministry of Electricity and Energy, 2015
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Figure 3 Primary energy consumption in KTOE; 2000-2015
20,000 18,000 16,000 14,000 Solar 12,000 Biomass (wood) 10,000 Coal and Lignite 8,000 Electricity 6,000 Natural Gas 4,000 Petroleum Products 2,000 Total Energy Consumption (ktoe) 0
Source: Ministry of Electricity and Energy, 2015
Table 2 Total Primary Energy Consumption in KTOE; 2011-2015
2011-12 2012-13 2013-14 2014-15
1,998 1,942 2,295 3,285 Petroleum Products 713 519 608 653 Natural Gas 2,288 2,440 2,812 3,131 Electricity 261 285 239 306 Coal 9,506 9,708 9,338 10,069 Biomass 0 0 0 1 Solar
Total 14,766 14,894 15,292 17,445 Consumption Source: Ministry of Electricity and Energy, 2015
7. Final energy consumption. Per capita energy consumption of electricity in Myanmar is among the lowest in Asia, and currently many households do not have access to electricity. The electricity sector is expected to expand rapidly over the next 15 years with a target of reaching almost full electrification in the county by 2030.
8. Energy resources—fossil. The remaining proved recoverable gas reserves in Myanmar are 10.3 trillion cubic feet (TCF): 0.4 TCF onshore and 9.9 TCF offshore (Myanmar Oil and Gas Enterprise (MOGE), September 2014). The remaining proved recoverable oil reserves are 150.9 million barrels (95.9 million barrels onshore and 55.0 million barrels offshore; MOGE, September 2014). The current estimate of coal resources by the Ministry of Mines (MOM) is about 540 million tons.
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9. Energy resources—non-fossil. The hydropower potential of the country’s rivers is estimated to be more than 100,000 MW installed capacity potential. Myanmar has identified 92 large hydropower potential projects with a total installed capacity of 46,000 MW which compared with the current installed capacity of 2,800 MW illustrates the huge potential to be harnessed. Myanmar has good natural conditions for solar energy, since it is located in the “sun-belt” up to the northern tropical. The highest potential ranges from a monthly high on a horizontal surface with 6.6 kilowatt-hours per square meter (kWh/m²) per day to 3.3 kWh/m² per day. There is currently limited information on the wind potential in Myanmar. Initial data show that there is a technical potential for the production of 4,000 MW of wind energy or 365 terawatt-hours (TWh) per year. However, earlier estimates suggest average wind speed is below 7 meters per second (m/s), and in many places this is only in the range of 2–5 m/s. Almost half of the total land area of Myanmar is covered with forest and wood fuel, and thus charcoal and biomass are the traditional forms of energy in use across the country. Biomass accounts for about two thirds of the total primary energy consumed in Myanmar. Geothermal energy has considerable potential for commercial development in Myanmar. A total of 93 sites have been identified, with 43 having been investigated. 2.1 Policy and reform program
10. In March 2011, a set of reform programs were introduced with the aim to transform the country to a modern, democratic, and developed nation by 2030. The government has focused on taking measures to accelerate the implementation of reforms and has identified electricity supply as a key priority. The framework for reforms was laid down in the National Comprehensive Development Plan (2011-2031), and in the Framework for Economic and Social Reforms (2012) that aimed to achieve poverty alleviation, improved infrastructure, and capacity building through formation of numerous plans: • Rural development and poverty alleviation, • Human resources development, investment and trade sector development, • Industrial development, • Financial and currency sector development, and • Regional and sector-wise development.
11. The legal framework in Myanmar for the energy sector in Myanmar is mainly covered by following acts: • Electricity Act (1948, amended in 1967); • Myanmar Electricity Law (2014); • Electricity Rules (1985; updated in 2015); • Petroleum Act (1934); and • Petroleum Rules (1937, amended in 1946).
12. The development of the energy sector is based on the main objectives of the government’s National Energy Policy announced in 2014. The policy set out to achieve the government’s overarching objective of poverty reduction and improvement in the quality of life. The energy policy also aims to improve the availability of energy supply through development of the country’s oil, gas, hydro, and renewable energy resources, and by improving energy efficiency in all sectors of the economy, especially in the industrial sector. The policy encourages greater private sector participation in the development of, and investment in, environmentally friendly and sustainable energy production technologies.
13. Based on the above objectives, a National Energy Policy was adopted in January 2014 by the National Energy Management Committee (NEMC). The policy sets out principles for the use of national resources, assigns duties to relevant ministries, proposes investments in power generation and transmission, and outlines quite far-reaching reforms to liberalize the sector and to attract foreign investment development in the country. The policy also aims to
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TA-8356 MYA: Myanmar – Energy Sector Assessment, November 2016 increase foreign exchange earnings through energy exports, but recognises the need to balance this objective against the requirement to meet the national demand. Necessary tasks are identified on a subsector basis and assigned to specific ministries, which are outlined in a work program. The policy is in general terms and requires secondary legislation and regulation to be implemented and have effect. The NEMC summarized the policy in nine points of elements and actions that are given in Box 1.
Box 1: National Energy Policy 1. To implement short and long term comprehensive energy development plan based on systematically investigated data on the potential energy resources which are feasible and can be practically exploited, considering minimum impact on natural environment and social environment. 2. To institute laws, rules and regulations in order to promote private sector participation and to privatize State Energy Organizations in line with State Economic Reform Policy. 3. To compile systematic statistics on domestic demand and supply of the various different kinds of energy resources of Myanmar. 4. To implement programs by which local population could proportionally enjoy the benefit of energy reserve discovered in the areas. 5. To implement programs on a wider scale, utilizing renewable energy resources such as wind, solar, hydro, geothermal and bioenergy for sustainable energy development in Myanmar. 6. To promote Energy Efficiency and Energy Conservation. 7. To establish R,D, D & D (Research, Development, Design, and Dissemination) Institution in order to keep abreast with international practices in energy resource exploration and development works and to produce international quality products in order to manufacture quality products and in order to conduct energy resource exploration works in accordance with international standard.
2.2 Institutional structure and governance
14. The Ministry of Electricity and Energy (MOEE) is responsible for electricity and oil and gas. Other ministries related to the energy sector include (i) Ministry of Agriculture, Livestock, and Irrigation with responsibility for off-grid rural electrification, (ii) Ministry of Natural Resources and Environmental Conservation with responsibility for coal mining, and (iii) Ministry of Industry with responsibility for energy efficiency. The organization chart of MOEE is shown in Figure 4.
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Figure 4: Organization of the Ministry of Electricity and Energy
Ministry of Electricity and Energy
Electricity Energy
Oil and Gas Planning Department of Electric Power Department (OGPD) Planning (DEPP)
Myanmar Oil & Gas Department of Hydropower Enterprise (MOGE) Implementation (DHPI)
Myanmar Petrochemical Electric Power Generation Enterprise Enterprise (MPE) (EPGE)
Department of Power Transmission Myanmar Petroleum and System Control (DPTSC) Products Enterprise (MPPE)
Distribution
Yangon Electricity Supply Corporation (YESC)
Mandalay Electricity Supply Corporation (MESC)
Electricity Supply Enterprise (ESE)
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2 OIL and GAS SECTOR 3.1 Oil and gas reserves, production and utilization
15. Myanmar has substantial oil and natural gas resources, but the capacity to meet the increasing domestic energy requirements has not been achieved. The current oil and gas supply has been very low due to lack of technical capacity and scarce financial resources. This situation could be reversed in the near future with acceleration of government reform programs in the oil and gas sector. Myanmar has 14 petroliferous sedimentary basins onshore and 3 petroliferous geological provinces offshore. These geological basins/ provinces are sparsely explored and exploited, but occurrences of major oil accumulations and world-class gas accumulations are evident and are in various stages of exploration and production. MOEE has demarcated 53 exploration and production (E and P) blocks onshore and 51 E and P blocks offshore (Appendix A, Figures A.1; A.2; and A.3). Thirty-four onshore blocks, and 38 offshore blocks are for E and P on a production sharing contract (PSC) basis with foreign petroleum operators. MOGE will hold eight onshore blocks for its own E and P. Figure 5 provides the locations of the petroliferous basins in Myanmar.
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Figure 5 Location map of oil and gas fields in sedimentary basins of Myanmar
Source: Ministry of Electricity and Energy, 2011.
16. Oil. It is estimated that Myanmar today consumes 70,000 barrels of oil equivalent per day (BOPD), importing 70% of its consumption. It has recently been successful in exploiting some of its offshore natural gas resources, through production-sharing contracts with foreign oil companies. MOGE, the state-owned economic enterprise under MOEE, is a project owner and a shareholder along with a number of companies currently exporting natural gas to Thailand and the PRC.
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17. Before 1963, Myanmar’s oil industry was operated by British Oil Company (BOC) (1954) Ltd., which was mainly owned by British interests. In 1963, the government purchased all the interests of British shareholders, and subsequently the government has owned and operated the oil industry. Active exploration and production (E&P) programs resulted in the discoveries of small to medium-sized oil and gas fields—in the Pyay embayment basin in the early 1960s and the Mann oil field in 1970 in the central Myanmar basin. Myanmar’s onshore oil production gradually increased to a peak of over 30,000 barrels of oil per day in 1985, but has recently decreased to 8,000 barrels of oil per day because of depleted oil reservoirs and a lack of significant oil discoveries. Figure 6 provides the monthly oil production in barrels since 1961.
18. There have not been any new oil reservoirs discovered in the last 20 years, and the production caliber per well has been limited as the natural depletion of reservoirs has its effect. The monthly oil production has in the last 30 years fallen from about 1 million barrels of oil per month in 1984 to about 0.2 million barrels per month in 2014. Furthermore, improved petroleum recovery contracts in some producing fields are not significant, resulting in decreasing crude oil supply for the domestic market. However, as is the case with natural gas, there is potential that the trend would be reversed with more E&P activity by production sharing companies (PSC).
19. More than 48% of the final consumption of petrol products in Myanmar is by the transport sector with the industry sector accounting for around 20%. In Figure 7 the final consumption of petroleum products is illustrated over the last decade divided for the main sectors. Even though there have been major changes in total consumption, the share of the different sectors remained broadly unchanged.
Figure 6 Onshore Myanmar oil production in thousands barrels per month; 1961–2014
1000 barrels of oil 1200
1000
800
600
400
200
0 Jan-61 Jan-66 Jan-71 Jan-76 Jan-81 Jan-86 Jan-91 Jan-96 Jan-01 Jan-06 Jan-11 Sep-62 Sep-67 Sep-72 Sep-77 Sep-82 Sep-87 Sep-92 Sep-97 Sep-02 Sep-07 Sep-12 May-64 May-69 May-74 May-79 May-84 May-89 May-94 May-99 May-04 May-09 May-14 Source: MOGE, September 2014
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Figure 7 Final consumption of petroleum products in KTOE; FY2005–2015
3,500
3,000
2,500
2,000
ktoe 1,500
1,000
500
0
Transport Industry Residential Agriculture Other
Source: Energy Master Plan, ADB, 2016
20. Gas. Five offshore gas fields have been discovered: Yadana (6.5 Trillion cubic feet (TCF), Yetagun (3.2 TCF), Shwe and Mya (4.5 TCF) and Zawtika (1.5 TCF)—with total reserves amounting to 15.7 TCF before production started. There is a huge potential for further discoveries – MOGE’s estimates for probable and possible future recoverable gas is as high as 5-10 times more than the current proven reserve. The estimates for gas resources for Myanmar are illustrated in figure 8 and the recoverable gas resources of the operating fields in figure 9.
Figure 8 Graphic Presentation of Gas Resources of Myanmar (in BCF)
530 Proven (2013) Onshore 5,600 4,682 Probable Possible Offshore 11,000 16,182 13,867
0 10,000 20,000 30,000 40,000 50,000 Source: Ministry of Electricity and Energy, 2011 and 2013.
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Figure 9 Recoverable Gas Resources of Operating Fields
Source: Myanmar Oil and Gas Enterprise, 2013 21. Domestic use of gas. Use of natural gas in Myanmar started with onshore gas production in the early 1970s, together with the construction of the Kyunchaung gas turbine power plant, the Kyunchaung fertilizer plant, and the Sale fertilizer plant. Before then, most of the associated gas was flared off. Later in 1985 and in the early 1990s, a few more gas processing plants—such as the Kyawzwa fertilizer plant, the Seiktha Methanol plant, and the Minbu LPG extraction plant—were constructed to make use of the natural gas. Several gas turbine plants were also constructed in the regions of Myanaung, Shwedaung and Yangon. MOGE had the peak production of onshore natural gas in the mid-1990s producing nearly 200 million cubic feet per day, supplying natural gas to fertilizer plants, LPG plants, power generation plants (60% of gas production), and various other industries. The development in daily natural gas production in the period 1975 – 2012 is illustrated in figure 10.
Figure 10 Natural Gas Production History in Myanmar
Source: Ministry of Electricity and Energy, 2013
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22. Most of the consumers were small, except for the power plants that have a daily consumption of about 30 million cubic feet. In Figure 11 the sectoral composition of the domestic gas consumption is illustrated for 2013, when 66% of gas consumption was used at the power plants for electricity generation. The cement industry is the second largest industrial user at 12% of consumption. The domestic supply is currently 0.350 billion cubic feet of gas per day and is distributed via a 2,875 km onshore pipeline system (6-24 inch), while offshore production for domestic use comes via a 436 km pipeline (24 inch) from Yadana to Yangon.
Figure 4 Domestic sectoral gas consumption pattern; 2013
CNG (6%) Refinery (2%) Fertilizer (3%) Other Industry (11%) Electricity (66%) Cement (12%)
Source: Myanma Oil and Gas Enterprise, 2014.
23. Export of gas. The discoveries of the huge offshore gas potential in the early 1990s led to the government’s decision to export gas produced from these gas fields, partly due to the low domestic use at the time. Production of offshore gas started in 1998 from the Yadana gas field, followed by the Yetagun gas field in 2000, the Shwe gas field in 2013, and the Zawtika field in mid-2014. Figure 12 shows the development in monthly gas production since 1995 for onshore and offshore sources, and it illustrates the huge increase in offshore gas production. The discovery of the Shwe gas field led to an agreement with the PRC to export 4.5 TCF over 30 years. These gas supplies started in 2013 and are exported to southwest part of the PRC via an 870 km 40-inch gas pipeline financed and operated by the buyer. The pipeline runs from Kyaukphyu in Myanmar to the border city of Ruili in Yunnan Province in the PRC. The export to Thailand is mostly from the Yadana field. In 2013 Myanmar totally exported 1.3 billion cubic feet of gas per day to Thailand (since 1998) and to the PRC (since 2013). The domestic supply is 0.350 billion cubic feet of gas per day, including MOGE’ onshore production.
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Figure 5 Myanmar gas production in MMCF per month; 1995–2014
MMCF
60000
50000
40000
30000
Off shore 20000 gas
10000 On-shore gas 0 Jul-96 Jul-99 Jul-02 Jul-05 Jul-08 Jul-11 Jul-14 Jan-95 Jan-98 Jan-01 Jan-04 Jan-07 Jan-10 Jan-13 Oct-95 Oct-98 Oct-01 Oct-04 Oct-07 Oct-10 Oct-13 Apr-97 Apr-00 Apr-03 Apr-06 Apr-09 Apr-12
Source: Myanma Oil and Gas Enterprise, 2014 24. Typical daily production of crude oil and natural gas from onshore reserves is about 8,100 Barrels of Oil Produced per Day (BOPD) and about 60 million cubic feet per day (MMCFD), respectively. About 45% of crude oil production comes from fields discovered after 1963 (the year the government took over control of oil and gas industry). More than 90% of onshore gas production is from fields discovered after 1963 and offshore gas production started first in 1998. Table 3 provides daily production figures for August 2014, and it indicates that the highest volume of oil production is from the Yenangyaung, Chauk, Mann, and Letpando fields, which are operated not by MOGE but by private operators such as MPRL3 and GoldPetrol4.
Table 3 Daily oil and on-shore gas production by field, August 2014
Field Oil Production Natural Gas Operator BOPD production MMCFD APHYAUK 22 6.962 MOGE AYADAW - 1.627 MOGE CHAUK 1,664 0.203 GOLDPETROL DAHATPIN 10 - MOGE HTANGAING 1 - MOGE KANNI 612 - MOGE KYAUKKWET 20 10.695 MOGE LANYWA 162 - MOGE LETPANDO 1,225 0.127 MOGE L/TWINZA 1 - MOGE MANN 1,440 1.429 MPRL
3 Myanmar Petroleum Resources Ltd. (MPRL); Myanmar. 4 GoldPetrol Joint Operating Company, a jointly controlled entity of Interra Resources; Singapore. 23 | P a g e
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MAUBIN 7 7.095 MOGE MYANAUNG 34 0.122 MPRL NYAUNGDON 245 22.832 MOGE PEPPI - 0.268 MOGE PYAY 95 0.101 MPRL PYAYEE - 0.286 MOGE SABE 12 - MOGE SHWEPYITHA 87 0.040 MPRL TABIN 42 - MOGE TAUKSHABIN 501 0.988 MOGE THARGYITAUNG 156 2.329 MOGE YENANGYAUNG 1,778 0.299 GOLDPETROL TOTAL 8,114 55.395 BOPD = barrels of oil per day, MMCFD = million cubic feet per day, MOGE = Myanma Oil and Gas Enterprise. Source: Myanma Oil and Gas Enterprise, October 2014.
25. Yadana gas field started production in 1998 and is exporting to Thailand a daily contract quantity (DCQ) of about 800 MMCFD since then. It has already passed 15 years of production life. Lately starting from 2013, Yadana is supplying an order of 200 to 250 MMCFD to domestic market through 20” gas pipeline connecting Yadana and Yangon. For Yetagun which has both gas and condensate production, there is no domestic market obligation. Gas is exported with a DCQ of about 400 MMCFD to Thailand and lately all of condensate production (~11000 barrels per day) is purchased by MOGE to refine in Thanhlyin Refinery. Shwe is exporting by 2013 about 400 MMCFD DCQ to China with MOGE off taking an order of ~60 MMCFD for local use. Zawtika started exporting a DCQ of about 300 MMCFD to Thailand starting from early 2014 and is transmitting an order of 100 MMCFD to MOGE depending on Myanmar market requirement. Table 4 provides information for the last 5 years of gas and condensate production and the gas export from the four off-shore fields.
Table 4 Natural Gas and Condensate Production, Export from Off-shore Field, Unit: MMCF for gas and barrels for Condensate Year Yadana Yetagun DCQ Production Export Gas Production Natural Gas
DCQ Natural Condensate Export Gas 2010-11 744 271409 215192 429 156652 3963699 150516 2011-12 787 287385 207563 421 153602 3863749 140263 2012-13 792 288931 217333 422 154173 3479267 144823 2013-14 741 270579 197826 402 146814 3379514 137823 2014-15 *808 293307 225238 *392 136746 2869870 127846
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Shwe Zawtika
Year DCQ Production Export DCQ Production Export
2013-14 115 42079 37041 3 986 2014-15 *315 137429 127963 *141 84102 57625 DCQ = Daily Contract Quantity Source: Myanmar Oil and Gas Enterprise 2014 April to September 2014 3.2 Arrangements for managing oil and gas
26. The MOEE is responsible for the upstream, downstream, and marketing aspects of the oil and natural gas sector. The state-owned Myanmar Oil and Gas Enterprise (MOGE) operates the entire chain of businesses from geological/geophysical exploration to drilling, production, and transportation of oil and natural gas. Myanmar Petrochemical Enterprise (MPE) does the processing of oil and natural gas and Myanmar Petroleum Products Enterprise (MPPE) markets petroleum products.
27. MOGE has demarcated 53 onshore blocks and 51 offshore blocks for exploration and production and made production sharing contract (PSC) arrangement with foreign companies. With three bidding rounds during the last three years, MOGE now manages PSC and improved petroleum recovery contracts. MOGE also has its own operation in 8 blocks. • 34 blocks onshore (including producing fields) operated by 24 companies, and • 38 blocks offshore (including 4 producing gas fields) operated by 18 companies. The biddings, since 2012, have been on an open tender basis. The results of the most recent tenders were announced in August 2014. Table 5 provides information for the onshore blocks and Table 6 for the offshore blocks. Table 5 Onshore blocks and awarded to companies
No. Blocks / Area Awarded Company Production Sharing Contract Blocks 1 B-2 (Zebyutaung- ONGC Videsh Limited, India Nandaw) 2 K (Yamethin) Eni, Italy 3 O (Pathein) Petroleum Exploration (PVT) Ltd., Pakistan 4 EP-1 (Kyaukkyi-Mindon) Brunei National Petroleum Co., Sdn.Bhd., Brunei 5 EP-3 (Thegon-Shwegu) ONGC Videsh Limited, India 6 IOR-5 (Htantabin) Petronas Carigali, Malaysia 7 C-1 (Indaw-Yenan) Pacific Hunt Energy Corp., Canada 8 H (Taungoo-Pyinmana) Pacific Hunt Energy Corp., Canada 9 J (Mawlamyine) Petroleum Exploration (PVT) Ltd., Pakistan 10 MOGE-4 (Myintha) CAOG S.a r.l., Luxembourg 11 EP-4 (Mayaman) JSOC Bashneft, Russian Federation 12 RSF-5 (Ondwe) Eni, Italy 13 MOGE-3 (Padaukpin- PTTEP South Asia Ltd. and Palang Natmi) Sophon Offshore, Thailand
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Improved Petroleum Recovery Blocks 14 IOR -4 (Pyay) MPRL E & P Pte. Ltd., British Virgin Islands 15 IOR -6 (Myanaung) MPRL E & P Pte. Ltd., British Virgin Islands 16 IOR -7 (Shwepyitha) Petronas Carigali, Malaysia Source: Myanma Oil and Gas Enterprise, September 2014.
Table 6 Offshore blocks and awarded to companies
No. Blocks/Area Awarded Company Shallow Water Blocks 1 A-4 BG Asia Pacific Pte Ltd., Woodside Energy Myanmar and Myanmar Petroleum E&P 2 A-5 Chevron (Unocal Myanmar offshore Co. Ltd) and Royal Marine Engineering 3 A-7 Woodside Energy Myanmar + BG Asia Pacific Pte Ltd and Myanmar Petroleum E&P 4 M-4 Oil India Limited + Mercator Petroleum Limited, Oilmax Energy Pvt Ltd. and Oil Star Management Services 5 M-7 Roc Oil Co. Ltd., Tap Oil Ltd. and Smart E&P 6 M-8 Berlang Holding B.V. and A-1 Mining Co., Ltd 7 M-15 Transcontinental Group (TRG) and Lin Win 8 M-17 Reliance Industries Ltd and United National Resources Development. 9 M-18 Reliance Industries Ltd and United National Resources Development. 10 YEB Oil India Limited, Mercator Petroleum Limited, Oilmax Energy Pvt Ltd. and Oil Star Management Services Deep Water Blocks 11 AD-2 BG Exploration and production Myanmar Limited, Woodside Energy Myanmar and Myanmar Petroleum E&P 12 AD-3 Ophir Energy Plc and Parami Energy Development 13 AD-5 Woodside Energy Myanmar, BG Asia Pacfic Pte Ltd and + Myanmar Petroleum E&P 14 AD-9 Shell Myanmar Energy and MOECO 15 AD-10 Statoil and Conocophilips 16 AD-11 Shell Myanmar Energy and MOECO 17 MD-2 Eni Myanmar 18 MD-4 Eni Myanmar 19 MD-5 Shell Myanmar Energy and MOECO 20 YWB Total E&P Myanmar Source: Myanmar Oil and Gas Enterprise, November 2014.
28. In these PSC arrangements, MOGE represents the government. It is also the project owner and can also take the position to partner the investor. MOGE’s share will be 20% to 25% when the project becomes commercial depending on the size of the commercial accumulation of petroleum. MOGE is currently a partner in the following gas fields: Yadana,
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Yetagun, Shwe, and Zawtika; it is also a partner in four international gas pipelines and one international crude oil pipeline. These partnerships generate approximately an annual income of $3 to $5 billion.
29. Under the energy sector reforms process described earlier in the report, from mid-2014, MOGE has been inviting private foreign companies into public-private ownership arrangements in the following functions: • Natural gas pipeline construction and maintenance works • Seismic data acquisition services for onshore fields. • Drilling services onshore, making use of MOGE’s drilling rigs.
30. MOGE is now working on as many as 80 PSC blocks (including eight onshore blocks) and directly holds interests in four international gas production companies and five international pipeline companies. MOGE’s stake in offshore gas fields and the pipelines is shown in Table 7.
Table 7 MOGE's stakes in offshore gas fields and pipeline companies; 2014
MOGE Share Business Lead Operator
15% Yadana Gas Production Total E & P, Myanmar 15% Yadana Gas Production Total E & P, Myanmar Transportation 20.45% Yetagun Gas Production PETRONAS Carigali 20.45% Yetagun Gas Transportation PETRONAS Carigali 20% Zawtika Gas Production PTT E & P Int. 20% Zawtika Gas Transportation PTT E & P Int. 15% Shwe Gas Production Daewoo E & P Int. 15% Shwe Gas Transportation (to Landfall) Daewoo E & P Int. Domestic 7.365% Myanmar-PRC Gas Line China National Petroleum Company 49.1% Myanmar-PRC Oil Line China National Petroleum Company
MOGE = Myanmar Oil and Gas Enterprise. Source: Ministry of Electricity and Energy, 2014.
31. MPE operates the three existing refineries in Myanmar: Thanhlyin, Thanbayargan and Chauk. These plants are ageing: the newest one is 30 years old and the oldest one is more than 50 years old (Chauk from 1954; Thanlyin from 1963 and Thanbayakan from 1982). Although the total designed capacity of the three is 51,000 barrels of oil per day (bodp), total output was 20,000 bodp in 2013. The refineries do not import crude oil; they process about 8,000 barrels from local oil production (either MOGE or PSC operators such as MPRL and Goldpetrol) and about 12,000 barrels of condensate from the Yetagun operator. Information for each refinery is presented in Table 8.
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Table 8 Refineries in Myanmar in 2013
Throughput Design Actual as % of Year of Capacity Throughput Main Products Refinery Design Commissioning (BOPD) (BOPD) Capacity
Naphtha, gasoline, Thanbayakan 25,000 8,600 34 1982 diesel, petroleum coke 46 Thanlyin 20,000 11,400 1963/1980 Naphtha, LPG
6,000 2,000 1954 Naphtha, wax Chauk 33
Total 51,000 22,000 BOPD = barrels of oil per day Source: Ministry of Electricity and Energy, 2014.
32. MPE’s refineries are performing far below capacity and the growing demand for energy has led to an increase in importing petroleum products. Some of the import is illegal, and since this is estimated at several hundred million dollars it is therefore a growing concern. In Figure 13 illustrates official figures for the import of gasoline and diesel oil in the last decade.
Figure 6 Total Import of gasoline/diesel oil to Myanmar, thousand tons; FY2005–2013
Source: Energy Master Plan, ADB, 2016
33. There is a plan to construct a new medium-sized refinery in Myanmar to refine crude oil imported from the Middle East and Africa. The refinery project would make use of the
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TA-8356 MYA: Myanmar – Energy Sector Assessment, November 2016 pipeline under construction parallel to the oil export pipeline to PRC. This parallel pipeline allows crude oil purchased by PRC from the Middle East and Africa to be shipped to Myanmar and then transported on to Yunnan and eventually into Chongqing via the 771 km pipeline route. The oil pipeline project also involves the construction of a new deep-water crude unloading port and oil storage facilities on Myanmar’s Maday Island. The China National Petroleum Corporation (CNPC) controls a 50.9% stake in the pipeline through its wholly owned subsidiary, Southeast Asia Crude Oil Pipeline (SEAP), which is responsible for the construction and operation of the pipeline. MOGE owns the remaining 49.1% stake. Another possible new refinery is planned for near Mandalay with a capacity of 20,000 barrels of oil per day, processing oil imported via the Myanmar-PRC oil pipeline. This refinery will only handle special Middle East thick and sour crude oil (characterized by high sulphur content); therefore it would not be able to handle domestically produced oil.
34. MPE operates five urea fertilizer plants having a capacity of about 2,000 metric tons per day (MTD), three liquid petroleum gas (LPG) extraction plants (with a total processing capacity of 50 MMCFD), a long-defunct methanol plant (with a name-plate capacity of 450 MTD) and a fleet of river vessels for transport of products. MPE’s fertilizer plants and LPG extraction plants are operating sporadically because of low feedstock, shortages of electric power supply, and ageing equipment/machinery. MPE’s LPG plants are running on a short and lean gas supply, leading to a low production of less than 10,000 metric tons per year. This is very much short of market demand. The Kyunchaung LPG plant is now idle because of a lack of gas feedstock.
35. Since June 2010, MPPE has permitted the private sector to import and operate retail fuel outlets. Reflecting increased demand, the number of outlets in the four years between June 2010 and July 2014 has quadrupled. As of July 2014, there are as many as 1,281 retail outlets compared with 269 outlets before June 2010. Table 9 shows the number of retail outlets per state/region as of July 2014. MPPE now operates only around 1% of the total outlets, compared with all before 2010. Figure 11 provides the annual sale of gasoline, diesel, and aviation turbine fuel in Myanmar in the period 2000–2014. Opening import and export to the private sector from 2010 saw an explosive growth in diesel sales from 150 million gallons (MMGAL) in 2009 to more than 450 MMGAL in the following year.
Table 9 MPPE and private retail outlets (as of July 2014)
STATE/REGION MPPE PRIVATE TOTAL
NAY PYI TAW 1 25 26
YANGON 3 111 114
MANDALAY 2 304 306
AYEYARWADY 133 133 BAGO 2 175 177
SAGAING 71 71
MAGWE 65 65
TANINTHARYI 9 9
KACHIN 40 40
KAYAH 1 10 11
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KAYIN 1 21 22
CHIN 1 2 3
MON 59 59
RAKHINE 25 25
SHAN 1 219 220
TOTAL 12 1,269 1,281 MPPE = Myanmar Petroleum Products Enterprise. Source: Ministry of Electricity and Energy, September 2014
36. Recently, MPPE has permitted the private sector to operate storage farms and to sell directly to river-borne vessels. There are five privately run storage farms and 12 private companies permitted to sell directly to river vessels. In addition, as many as 13 private companies are permitted in Thilawa Special Economic Zone area to operate storage tank farms. These have a total capacity of 97 million gallons of premier gasoline (around 8 months’ supply), 118 million gallons of diesel (around 3 months’ supply) and 1.3 million gallons of aviation fuel.
37. Myanmar’s statistics on daily crude oil equivalent consumption are not readily available. For the government sector, the MOEE keeps its own data on the import of petroleum products. For the private sector import data are kept by the Ministry of Commerce and Union of Myanmar Federation of Chambers of Commerce and Industry.
Figure 7 Annual sales of gasoline, diesel, and aviation turbine fuel; FY2002–2014
MMGAL 500 450 400 350 300 250 200 150 100 50 0
GASOLINE DIESEL ATF
MMGAL = millions of gallons, ATF = aviation turbine fuel. Source: Ministry of Electricity and Energy, 2014.
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3.3 Oil and gas prices
38. Since June 2012 MOGE has been required to subsidize part of their sales of gas to the Ministry of Electric Power (MOEP), and the subsidy has since led to financial losses to MOGE of a value of more than $300 million up to June 2014 for gas sales of 150,000 million cubic feet (MMCF). Oil purchasing prices are different between operators, but are linked to the price of a benchmark crude oil in the Singapore market. MOGE transfers the crude oil received from its own production and purchases from the following operators: • Goldpetrol in the Yenangyaung and Chauk fields at the Mean of Platts Singapore market (MOPS), • Myanmar Petroleum Resources in the Mann field at MOPS price, and • Petronas in Yetagun at $3.85 discount on the price of branded crude oil in Singapore.
39. This crude oil is sold to MPE at an internal transfer between MOGE and MPE (which are both under MOE). The non-arm’s-length sales price of MK59,330 per barrel is well below the world oil market price. The transfer price was established in FY2010-FY2011 and has now been fixed for 5 years. The price was calculated based on the actual production cost in 2010 including the incremental production gross value, a 10% profit margin and 5% commercial tax—all based on an exchange rate of $1 = MK800. Due to changes in the exchange rate against the dollar, for the financial year (FY2011-2012) it was decided not to include the profit margin and commercial tax in the price any longer and the exchange rate was set at $1 = MK890. The development in the following year has resulted in, that the oil price converted to USD has fallen about 20% from USD 74 per barrel to about USD 59 per barrel today. In the same period the average world market price for crude oil has been between USD 100 per barrel in 2010 up to USD 105 per barrel in 2013 and currently in November 2014 at USD 80 per barrel.
40. The sales price of refined petroleum products from MPE to MPPE for gasoline is MK2,870 a gallon and for diesel MK3,050 a gallon including a commercial tax of 10%, refining services of 2% and a profit margin of 3%. MPPE sells domestically produced fuel to filling stations at MK3,350 a gallon for gasoline and MK3,500 a gallon for diesel including a commercial tax of 10%, refining services of 2% and a profit margin of 3%. The retail price for imported products is slightly higher and reported only to be MK20 a gallon higher. This price chain of domestic produced petroleum products is illustrated in Figure 15 and in Table 10.
Figure 8 Price setting of domestic produced petroleum product, 2014
Transfer price : Gasoline MK2870 per gallon •MPPE •MOGE Diesel: MK3050 per gallon Retail prices similar incl. : Transfer price: to sales prices by Commercial tax:10% Gasoline: MK3350 per gallon private importer of petrleum products Transfer price: Refining services : 2% Diesel: MK3500 per gallon Profit margin: 3% incl. : MK59,330 per Supplier covers Commercial tax:10% barrel; transportation cost Refining services : 2% •Retail sale: Supplier covers Profit margin: 3% consumer transportation cost Supplier covers transportation •MPE cost
Source: Ministry of Electricity and Energy, November 2014
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41. MPPE operates a dozen retail outlets selling locally produced gasoline and both local and imported diesel. The pricing is as mentioned above reflective of MOPS oil price. Private local companies sell premium gasoline (RON 92 & RON 95) and premium diesel at MOPS oil price plus margin.
Table 10 Transfer prices from MPE to MPPE and sales prices from MPPE to consumers; November 2014
ENTERPRISE GASOLINE (92 RON) DIESEL AVIATION FUEL ( PER GALLON) (PER GALLON) (PER GALLON) MPE to MPPE K. 2870 K. 3050 K. 2945
MPPE to Consumers K. 3350 K. 3500 K. 3190* * Foreign companies/lines: US$ 3.30 per gallon Source: Ministry of Electricity and Energy, November 2014 42. MOGE supplies 250 to 300 MMCFD of natural gas to domestic consumers. Of this, about 60 MMCFD is from MOGE’s on-shore production. The other MMCFD is from the Yadana, Shwe and Zawtika fields, operated respectively by Total E & P Myanmar, Daewoo International and PTT International. The Yadana gas is priced at the same level as the export price to Thailand; Shwe and Zawtika gas is priced at Domestic Market Obligation (DMO). DMO price is a 10% discount of the contract price to a foreign buyer, e.g. CNPC. The consumers include MOEP for its power plants (run by both IPPs and MOEP), other government industries, private industries and CNG vehicles. Table 11 shows the MOGE sales price to different consumers based on respective onshore and offshore gas.
43. There is a need to look into this pricing system in a more methodical manner in order to create a more competitive and transparent market for the state enterprises as well as for both consumers and sellers. There is no incentive for MOGE to reduce the gas losses in the pipeline.
Table 11 MOGE’s scheme of gas prices as sold to different consumers
Offshore Gas supplied by Offshore Gas supplied by Consumer 20” pipe* 24” pipe**
$7.1799 per MMBTU - 100% state-owned
Foreign owned/JV $8.0511 per MMBTU $10.6611 per MMBTU
Local private industries $5.1932 per MMBTU $7.5590 per MMBTU
* Refers to gas from Yadana and Zawtika **Refers to gas from Yadana Source: Myanmar Oil and Gas Enterprise, 2014.
44. Offshore production in the Yadana gas field began in 1998, and later in the other three off-shore gas fields. Since then, MOGE has generated a total accumulated income from sales/export of gas of more than $14 billion. In Table 12 the sales volume and income for each of the field is given. 32 | P a g e
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Table 12 MOGE's total incomes from sales / export of off shore gas in the period 1998 – June 2014
USD income Gas field Production period Sales volume MMCF
1998 – July 2014 3,055,591 5,600,556,166 Yadana
2000 – July 2014 1,729,157 6,475,919,485 Yetagun
2000 – July 2014 (BBLS) 46,689,925 2,059,899,977 Yetagun
2013 – July 2014 67,782 189,530,831 Shwe
TOTAL 4,852,530mmscf + 14,325,884,459 46mmbbls Source: Myanmar Oil and Gas Enterprise, September 2014
45. The principle set-up for the distribution of gas sales from gas field to buyer (export) is illustrated in Figure 16. Transparency is ensured by sales proceeds by international banks and appointment of a pay agent to handle the payment proceeds among the involved parties based on shareholder agreements etc.
Figure 9 Distribution of Gas Sales Proceeds from gas field to buyer
Source: Developed based on Interview MOGE/MOE and data from Mizzima, Issue 45, November 2014 46. Currently MOGE sells gas (on government instruction) at $5.0 per MMBTU, a price below that paid to the Yadana operator and has led to financial losses for MOGE. The current pricing system in the oil and natural gas sector is not fully transparent and does not provides
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TA-8356 MYA: Myanmar – Energy Sector Assessment, November 2016 equal conditions for all. The problem with the subsidized gas issue is also relevant in connection to the ongoing gas-fired power plants construction.
47. There are institutional issues, concerning the capacity/skill of employees and the economics of operating out-of-date refineries and urea fertilizer plants at government-set budget levels. In general, MOGE, MPE and MPPE need to upgrade their technical, managerial, and negotiation skills in order to keep abreast with international companies. In preparation for its challenges and new roles and responsibilities, the Myanmar energy sector (especially MOGE, MPE, and MPPE) should strive to plan for: (i) a human resources development program, (ii) an expedited process for corporatization, and (iii) the application of new technology in all of activities. 3.4 Oil and gas legislation
48. Use of crude oil for commercial purposes began in Myanmar from as early as the 11th century during the Pagan Dynasty. It was used as preservatives for palm leaves, which were used as writing materials and also as lubrication in bullock carts—which still exist today in rural Myanmar. The modern petroleum technology started in Myanmar in 1886, under the British rule in the aftermath of Third Anglo-Burmese War, in the Yenangyaung oil field in central Myanmar.
49. Many of the laws, rules and regulations applicable in Myanmar until recently are of pre- 1948 Indian origin when Myanmar and India were united under the British Empire. Myanmar declared independence in 1948 and took control of the Myanmar Petroleum Industry in January 1963 by purchasing shares held by British interests. Most of the laws, rules, and regulations from that period are still in force, while some are in the process of being redrafted to match government reform plans. These include the “Myanmar Petroleum and Petroleum Products Law”—which concerns petroleum import, storage, transport, distribution, and sales— and the “Shallow/Hand-dug Oil Wells Law” concerning the operation of shallow/hand-dug oil wells and permits the involvement of the private sector.
50. For all practical aspects of petroleum E and P works in Myanmar, the legal instrument is the model Production Sharing Contract issued by MOGE. The current standard PSC terms and conditions for both onshore and offshore blocks has been proven to be acceptable and effective, although there might be a need to align the contracts with both regional and international conditions in order to enhance the development of the oil and gas potential. The main elements of the standard PSC are listed in Box 3, and they are also illustrated in Appendix A, Figure A.4.
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Box 3: On-shore PSC Relevant PSC Terms & Conditions applicable for on-shore E & P blocks: 1. Management: MOGE is responsible for the management of operations. The contractor is responsible for the execution of such operations and the expenditures thereof, and reports to MOGE. 2. Preparatory period: six months (after signing of contract) and extendable for EIA, SIA and EMP works/reports 3. Exploration period: Initial term 3 years, 1st extension 2 years, 2nd extension 1 year 4. Seismic and well commitment: negotiable based on incurred expenditure 5. Production period: 20 years from completion of development or according to sales contract, whichever is the longer 6. Signature bonus: payable within 30 days after approval from MIC on EIA/SIA report 7. Relinquishment: 100% at end of exploration period, less discovery area and development/production areas 8. Royalty: 12.5% of available petroleum 9. Cost recovery limit of 50% 10. Production split: progressive per rate of production from 60 to 90% for crude oil and natural gas 11. Production bonus: progressive per rate of production from US$ 0.5 million to 6.0 million 12. Domestic requirement: 20% of crude oil and 25% of natural gas of contractor profit petroleum to be sold at 90% of fair market price 13. Training fund: US$ 25,000 per year during exploration and US$ 50,000 per year during production 14. R & D fund: 0.5% of contractor profit petroleum 15. State participation: 15% with MOGE’s option to increase to 25% 16. Governing Law: Law of the Republic of the Union of Myanmar 17. Arbitration: Myanmar Arbitration Act 1944, Yangon Venue 18. EITI Implementation/CSR 19. The contractor must include a local Myanmar national company
51. The main terms and conditions for PSC terms and conditions for offshore E and P blocks are listed in Box 4.
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Box 4: Off-shore E & P PSC Terms and Conditions for off-shore E & P blocks 1. Management: MOGE is responsible for the management of operations. The contractor is responsible for the execution of such operations and expenditure thereof and reports to MOGE 2. Preparation period: six months and extendable for EIA, SIA and EMP works/reports 3. Study period: 2 years and a data fee is payable within 30 days from the start of the study period 4. Exploration period: Initial term 3 years, 1st extension 2 years and 2nd extension 1 year 5. Seismic and well commitment: Year 1 – Seismic acquisition, processing and interpretation Year 2 – Drill 1 well Year 3 – Post-well evaluation and drill 1 well Year 4 – Prospect evaluation Year 5 – Drill 1 well 6. Production period: 20 years from completion of development or according to sales contract, whichever is the longer 7. Signature bonus: Payment within 30 days after start of exploration period 8. Relinquishment: 100% at end of exploration less discovery/development/production areas 9. Royalty: 12.5% of available petroleum 10. Cost recovery limit of 60% in water depths of 2,000 feet or less, 70% in water depths exceeding 2,000 feet 11. Production split: Progressive per rate of production: 60/55% to 85/80% (crude oil) and 60/55% to 90/80% (natural gas) 12. Production bonus: Progressive per rate of production, US$ 1 million to US$ 10 million 13. Domestic requirements: 20% crude oil and 25% gas of contractor profit petroleum to be sold at 90% of fair market price 14. Training fund: US$ 50,000 per year during the exploration period and US$ 100,000 per year during production 15. R & D fund: 0.5% of contractor profit petroleum 16. State participation: up to 20% with MOGE to have the option to increase up to 25% 17. Governing Law: Law of the Republic of Union of Myanmar 18. Arbitration: UNCITRAL Arbitration Rules, Singapore Venue 19. EITI implementation and CSR 20. Inclusion of a Myanmar national company is not mandatory
3.5 Oil and gas pipelines
52. MOGE operates the whole chain of activities from geological/geophysical exploration to drilling, production, and transport of oil and natural gas. Domestic gas and oil pipelines are constructed and operated by MOGE; their total length is 4,111 km including all of various dimensions as listed in Table 16. MOGE has been laying pipes throughout Myanmar to expand its national network and gas is distributed via an onshore pipeline system (6-24 inches) and offshore from Yadana to Yangon via a 410 km pipeline (24 inch)—(as illustrated in Appendix A, Figure A.3). This pipeline is currently transporting 200 MMCFD and can be increased up to 250 MMCFD by compression if the domestic market demands more gas.
53. MOGE is facing an increasing number of leakages in the pipeline system, and it is estimated that more than 100 leaks were detected in 2013, but there is no system for leakage monitoring and regular maintenance. The most recent figures for MOGE’s gas losses due to leakage and flaring given in Table 13 indicate a total gas loss of to as much as 1.5% of the production—valued at about $1 million.
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Table 13 MOGE’s gas losses due to leakage and flaring
Financial Year Gas losses in million cubic feet 2011 – 2012 53.4 2012 – 2013 7.9 2013 – 2014 119.6 2014 – 2015 (first 6 months only) 160.0 Source: Myanmar Oil and Gas Enterprise, October 2014. 54. Combined with poor maintenance and a lack of compression in the gas pipelines, the existing old gas gathering and pipeline distribution system operates at significantly low capacity and efficiency. Also, due to the limited flow of gas, the operating capacity of gas-fired electricity generating plants is low.
55. The total length of export gas pipelines is 1,720 km. In parallel to the Shwe gas pipeline to Yunnan Province of the PRC, a crude oil pipeline is in place. In Tables 14 and 15 the size and length of the domestic and trans-border pipeline systems are described. The gas pipeline from Myanmar to the PRC is providing a minor amount of gas for the domestic market— approximately 5% of the total gas transported in the pipeline, whereas the entitlement for domestic market is 20%. Table 16 provides data for the monthly gas transmission in the pipeline.
Table 14 Gas and crude oil pipeline systems, 2013
Gas pipeline system Crude oil pipeline system Dimension Kilometers Dimension Kilometers 24" 134 20" 655 14" 941 12" 257 10" 1,311 10" 32 8" 320 8" 60 6" 184 6" 61 TOTAL 3,958 TOTAL 153 Source: Myanmar Oil and Gas Enterprise, 2014. Table 15 Trans-border gas and crude pipeline systems in Myanmar, 2013
Gas pipeline system Crude oil pipeline system Dimension Kilometers Dimension Killometers Myanmar– PRC (Shwe) 40" 736 Yadana 36" 410 Myanmar– 32” 741 32" PRC Zawitka 28" 300 Yetagun 24" 274 TOTAL 1,720 TOTAL 741 Source: Myanmar Oil and Gas Enterprise, 2014.
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Table 16 Gas transmission through the Myanmar–PRC gas pipeline; June–September 2014
Export to the PRC Domestic TOTAL MMCF per month MMCF per month MMCF per month June 2014 6,488 576 7,064 July 2014 6,331 389 6,720 August 2014 11,148 420 11,568 September 2014 10,967 400 11,367 MMCF = million cubic feet. Source: Myanmar Oil and Gas Enterprise, 2014.
3 COAL SECTOR 4.1 Coal reserves, production, and utilization
56. The Ministry of Mines in May 2013 announced that coal existed in 565 places, with estimated resources of 540 million tons (Appendix B, Figures B.1 and B.2). The coal is generally low quality lignite and sub-bituminous. Coal extraction and its use to date has been quite limited and with little application of technology due to low investment and the remoteness of the deposits. Earlier, there were only three active coal mines—in the Sagaing region and in the north of the Shan state—but now as many as 57 private and government mines are operating, producing nearly 700,000 metric tons year (Appendix B, Table B.1.). Since all mines are open cast, special attention is required to address the environmental and social issues. Figure 17 shows the development in coal production over the last fifteen years; it highlights the halving of production from about 1,400 thousand tons in 2007 to less than 700 thousand tons in 2013.
57. About half of the coal produced is used for power generation at the 120 MW coal-fired power plant in Tigyit, and a similar amount is used by cement and steel companies (Appendix B, Table B.2). Only a small proportion is used for cooking and heating in households.
58. The Ministry of Mines expects to substantially increase the production of coal by 2030—up to 5 million tons a year—and is looking to expedite exploration and extraction of coal by using technology and funding from foreign investors. The future of coal as a fuel feedstock for power generation is open, depending on the location and quality of deposits.
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Figure 10 Coal production in Myanmar, Thousands tons; FY2001–FY2015
1,400
1,200
1,000
800
600
400
CoalProduction (thousandtons) 200
0
Source: Ministry of Mines, 2014. 4.2 Coal institutional arrangements
59. The Ministry of Mines is responsible for overall mining policy and development. The ministry has two main departments and six state enterprises. The Department of Geological Survey and Mineral Exploration is responsible for mapping, prospecting, and exploration of minerals, including coal. The Department of Mines is responsible for preparing mining policy, granting exploration permits, and coordinating the mining sector. The exploration permits are issued to private companies in accordance with the Myanmar Mines Law 1994. As of late 2013, 57 coal production licenses have been issued.
60. The state-owned No. 3 Mining Enterprise5 is responsible for the production of coal. It relies on a production sharing contract (PSC) system with private companies by which 100% of investment is borne privately and profits are shared between the two parties. Following the privatization of the Kalewa mine in the Sagaing Division and the Namma mine in Northern Shan State, state enterprises are no longer involved in coal production.
61. With the future demand for coal expected to increase in the industrial sector and in thermal power plants, effective exploitation of coal in is crucial. Private sector interest, both local and overseas, in exploration and production of coal deposits needs to be promoted. In addition, appropriate legal frameworks and pricing mechanisms must be put into place. A close partnership should be maintained between MOEP, MOM and the private sector to implement mine-mouth coal-fired power plants.
5 No. 1 Mining Enterprise is responsible for non-ferrous metals (lead, zinc, copper, silver), and by- products, including antimonial lead, copper matte and nickel speiss. No. 2 Mining Enterprise is responsible for refined tin, wolfram concentrates, tin-wolfram-scheelite and tin-wolfram mixed concentrates, gold and other by-products associated with tin and tungsten minerals; also the exploration and production of tin-tungsten and gold.
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4.3 Coal prices
62. Domestic coal prices are set by the market and vary from about MK9,000 to MK25,000 per ton in Shan State to about MK40,000 per ton in the Kalewa Region, depending on the calorific value. 4.4 Coal legislation
63. There are two existing laws pertaining to the coal mining industry: The Myanmar Mines Law 1994 and the Myanmar Mines Rules 1996 that set the legal framework for coal mining, which is under the jurisdiction of the Ministry of Mines. The objectives of Myanmar Mines Law are: • To meet domestic demand and increase exports, • To promote local and foreign investment, • To provide the approval framework for the issuing of licenses, • To improve the use, conservation, and research of mineral resources, and • To provide environmental protection
64. The Myanmar Mines Rules of 1996 focuses on the development of mining with the main goals as follows: - To boost production to meet growing domestic needs and to increase foreign exchange earnings, - To invite participation in terms of technical know-how and investment from sources within the country and from abroad, and - To promote the development of copper, gold, lead/zinc, iron, steel coal, nickel and construction-use industrial minerals such as cement-making minerals, dimension stones and aggregates. 4.5 Immediate issues for the coal sector
65. With the future demand for coal expected to be buoyant from the industrial sector and for thermal power generation, much needs to be done for effective exploitation of the country’s coal resources. Main efforts should focus on promoting private sector interest, both local and foreign, in exploration and eventual production of coal; establishing a legal framework and pricing policies that would foster private sector incentives to invest in the sector; and creating close coordination between MOEE, MOM and the private sector to facilitate implementation of mine mouth coal-fired power plants.
4 RENEWABLE ENERGY
66. Renewable energy sources such as wind, solar, and biomass have great potential in Myanmar, but so far only hydropower is being developed and used on a commercial scale. However, in August 2014 the MOEE signed the first agreement for commercial use of solar energy supplying the network.
67. Inadequate power supply has emerged as one of the most serious infrastructure constraints on sustainable economic growth. The potential for Myanmar to be reliant on fossil fuels in the energy mix in the future raises environmental concerns at national, regional, and global levels. Burning of fossil fuels emits greenhouse gases (GHG) that may cause climate change and impose substantial environmental and economic costs. It is therefore considered essential that the country reduce emissions of GHG, ease growth in fossil fuel energy demand, curb the upward pressure on energy prices, and improve energy security. Thus, power systems based on renewable energy are considered promising solutions for alleviating some
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TA-8356 MYA: Myanmar – Energy Sector Assessment, November 2016 of the power shortages in the country and also in reducing GHG emissions. The national energy policy guidelines prepared by NEMC include promoting wider use of new and renewable sources of energy. MOST is responsible for related research and development of renewable energy technologies. The following agencies work cooperatively with MOST on renewable energy: - MOAI, is responsible for biofuels and micro-hydropower for irrigation purposes, - MOECAF, is responsible for fuel wood, climate change, and environmental standards and safeguard requirements, and - MOLFRD, is responsible for rural development including energy and together with MOEP for rural electrification.
68. Community-based renewable energy projects will help rural areas to access electricity services, meet local electricity demand in an environmentally and socially sustainable manner, and improve standards of living for the poor through provision of community-level infrastructure. Access to modern energy services is not only a high government priority but also essential for meeting each of the UN Millennium Development Goals.
69. Renewable energy is expected to play an important role in the Myanmar National Electrification Plan (NEP), which aims to bring electricity access to all by 2030. Putting the NEP into action requires a substantial increase in access, from about 3 million connected households to about 10 million households within a period of 16 years. A two-pronged approach was proposed in September 2014 under the NEP: an aggressive grid electrification rollout program and an ambitious off-grid program. In the long term, Myanmar’s settlement patterns and demand aspirations suggest that grid-provided power would dominate. However, there is a strong need for mini-grid/off-grid electricity supply (including from RES), in order to bring basic electricity services as soon as possible to the maximum number of households. The implementation of this program will spur the use of RES. 5.1 Hydro6
70. Myanmar’s rich water resources account for 7.7% of all Asian countries. Both large and small-scale power plants have been commissioned, totalling 2,971 MW. In terms of small hydropower projects, a total of 26 micro-hydro and 9 mini-hydro power projects have been developed, ranging from 24 kilowatts (kW) to 5,000 kW, particularly in rural border areas without a grid connection. An additional five micro-hydropower projects are planned for: three in eastern Shan State, one in Kachin State, and one in the northeast of the Shan State. A study by MOEE concluded that there are as many as 210 potential sites for small and medium- size, each having less than 10 MW, with a total potential installed capacity of approximately 230 MW.
71. The regional governments are permitted to approve small-scale hydro plants (up to 30 MW. MOEE provides all possible assistance and encourages co-operation and sharing of knowledge to provide appropriate service to off-grid projects. Through this strategy, it is expected by 2030 small-scale hydropower plants of approximately 40 MW will be developed throughout the country. In addition to hydropower other renewable energy resources like solar wind and biomass will also be developed.
72. Hydropower activities of the MOLFRD will mainly involve pico hydro systems, which are the most common type typically used for off-grid power, as they range from a few hundred watts to several hundred kW. MOLFRD is very active in rural electrification and will have implemented an electricity supply to 3,125 villages by 2015. The next 30-month plan includes
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TA-8356 MYA: Myanmar – Energy Sector Assessment, November 2016 electrification of 20,000 villages by hydro, solar, and biomass energy. The program will be funded by the government budget. 5.2 Solar
73. Myanmar has good natural conditions for solar energy. The location within the “sun- belt” up to the Tropic of Cancer provides Myanmar with a high level of radiation, even allowing for a typical reduction during the rainy season. The Solar Energy Research Laboratory Thailand suggests that Myanmar's solar level is on a par with Thailand, and above that of Lao PDR and Cambodia. The highest potential would be in the Central Dry Zone of Myanmar where there is an annual regional variation of solar radiation on a horizontal surface between 3.3 and 6.6 kWh/m² per day (Appendix C, Figure C.1). These values can be transformed to data for electricity production with a suitable inclination angle; the photovoltaic (PV) cell electricity generation output for a location in Myitkyina is 1,532 KWh/kWp and for Mandalay (Dry Zone) 1,716 KWh/kWp (Appendix C, Figure C.2).
74. Solar energy has been introduced in some rural areas in the last decade through photovoltaic (PV) cells to generate electricity for charging batteries and to pump water for irrigation. As an initial step to demonstrate PV power systems for remote villages, some equipment has been installed under a technical co-operation program with other developing countries. Several installations were established in 2013 and 2014 as a part of the MOLFRD program described above.
75. There is potential for commercial use of solar energy. MOEP is conducting a preliminary investigation to construct solar power plants with foreign direct investment (FDI) in Minbu city, the Magway Region, and in the Myingyan district in the Mandalay Region. In August 2014, MOEP signed the first agreement with the US firm ACO Investment for an investment of $480 million in a build-own-transfer contract to construct a 300 MW PV (2 x 150 MW) grid- connected solar power plant on two locations in the Mandalay Region. 5.3 Wind
76. There is currently limited information on the potential to harness wind power in Myanmar. Initial data show that there is the technical potential to produce 4,000 MW (365 TWh per year) from wind energy, particularly in the Shan and Chin States—high areas of the central region and along the coast. However, previous measurements figures suggest an average wind speed below 7m/s—and in many places this is only in the range of 2 to 5 m/s.
77. Two foreign companies, the Thailand-based Gunkul Engineering Public Co. and the PRC-based Three Gorges Co., signed MOUs with Department of Electric Power to develop these projects several years ago. The MOU with the Gunkul Engineering Public Co. includes plans to develop 2,930 MW wind power plants in Mon State, Kayin State, Thaninthayi Region, Shan State, and Kaya State; and the MOU with the Three Gorges Co. includes 1,102 MW wind power plants in Chin State, Rakhine State, Ayeyawaddy Region, and Yangon Region. However, neither company has yet begun activity on any of the projects.
78. Wind energy is in the early stages of development in Myanmar. However, at least three micro wind power projects (smaller than 3 kW) are currently operating in the collaboration between the Department of Physics at Yangon University and the Department of Electric Power (DEP). The MEPE is collaborating with the New Energy and Industrial Technology Development Organization (NEDO) of Japan. Further assessments of wind data and feasibility studies are required.
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5.4 Biomass
79. Since almost half of the total land area of Myanmar is covered with forest and wood fuel, charcoal and biomass are traditional forms of energy across the country. Biomass amounts for just over half of the total primary energy consumed in Myanmar, of which wood fuel accounted for the half and pigeon pea stalk and sesame stalk share much of the rest. The proportion of households using wood fuel for cooking is much lower in urban areas than in rural areas, where wood fuel is a major energy source (93% of rural households compared to 42% in urban households). Charcoal is used in 42% of urban households and 4% of rural households. The potential annual yield of wood fuel is up to 19.1 million cubic tons, and 18.5 million acres of land could generate residues, by-products, or direct feedstock for biomass energy. Agricultural by products, such as pigeon pea stalk, sugarcane bagasse, rice straw, rice husks, sesame stalks, and palm leaves, offer limited sources of energy. In addition, there is approximately 103 million head of livestock that could generate animal waste for biogas. Of the total biomass-sourced energy over 90% is fuel wood, most of which is harvested from natural forests. The scale of dependence on biomass is therefore not only an energy supply issue, but also raises concerns about widespread environmental degradation.
Biogas
80. MOST is working on production of biogas from animal waste materials. The ministry is also carrying out research on expanding the use of a low-cost household bio-digester system in rural villages, and has already established 190 biogas digesters for lighting/cooking purposes. The digesters are widespread over the country: 161 have been constructed for village purposes and 29 for families. The distribution and location of the digesters can be found in Table 17.
Table 17 Existing biogas digesters (lighting/cooking), 2013
States/Regions Number of Constructed Digester Total No Digesters for Villages Digesters for Families 1 Nay Pyi Taw 9 14 23 2 Mandalay 109 4 113 3 Sagaing 23 2 25 4 Magway 9 - 9 5 Shan(North) 1 - 1 6 Shan(South) 1 1 2 7 Shan(East) 2 1 3 8 Kayar (Loikaw) 1 - 1 9 Ayeyarwady - 2 2 (Pathein) 10 Kachin - 3 3 11 Rakhine - 1 1 12 Mon - 1 1 13 Yangon 1 - 1
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14 Chin 1 - 1 15 Kayin 4 - 4 Total 161 29 190
Source: Ministry of Science and Technology, September 2014.
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Gasifier technology 81. Gasifiers, which use rice husks and wood chips, are often used as fuel savers for existing diesel generators where demand and cost rise above affordability. For larger villages and SMEs, bio energy is often the only solution to provide power for smaller production purpose. In 2009, MOST established eight pilot wood chip gasifier plants with a total electric capacity of 360KW. Private initiatives for electrification by gasifiers include more than 210 units with a total capacity of 3.6 MW, but the technology is not as widespread as in the neighboring countries, especially India. In order to ensure the expected electricity output, the technology requires a comprehensive training of operators.
Biofuel (Biodiesel/ Ethanol): 82. The Myanmar Chemical Engineers’ Group reported that five biofuel plants have been constructed by various agencies between 2003 and 2010 as indicated in Table 18, with a total annual production capacity of 19.5 million gallons of ethanol. Bioethanol is a convenient fuel acceptable in remote locations and could provide self-sufficient supply on a community level. In 2009, the government issued a notification permitting the production, transport, storage, and sale of biofuel in Myanmar in order to encourage substitution of gasoline with biofuel produced from agricultural crops and other biomass. However, this legal act has not been sufficient to spur biofuel development.
Table 18 Bioethanol production facilities in Myanmar, 2014
No. Name of plant Gallon/year Status Ethanol Distillery (Government) 150,000 Operating 1 No. 2, Sugar Mill 2003 MSE (Azeotropic System, Myanmar) Ethanol Distillery (Semi-Government) 900,000 Operating 2 Kantbalu Sugar Mill 2005 MEC (Azeotropic System, Myanmar) Micro Hydro/Tidal Power Ethanol Distillery (Semi-Government) 900,000 Operating 3 Taungsinaye Sugar Mill 2007 MEC (Azeotropic System, Water Current Power Myanmar) Ethanol Distillery (Private) 10,500,000 Operating 4 Maunggone Sugar Mill 2008 Great Wall Company (Molecular Sieve Syatem, China) 5 Ethanol Distillery (Semi-Government) 7,500,000 Operating Inngagwah Sugar Mill, 2010 MEHL (Molecular Sieve System, China) Total production/year 19,950,000 Source: The Myanmar Chemical Engineers’ Group, Sept. 2014
83. A formerly strong national move to produce biodiesel from the oilseed of Jatropha appears to have stopped, according to sources from Ministry of Industry. By September 2011, about 2 million hectares (5.2 million acres) has been planted with Jatropha compared to an initial target in 2005 of 3.2 million hectares (8 million acres). Due to lack of support (such as subsidies for production), the presence of pest and diseases in the Jatropha type cultivated in Myanmar, and outstanding legal issues these five facilities are not currently in operation. The yield was less than expected because the wild variety used did not justify the investment, and the creation of a market was not considered. In addition, the international market had decreased and health issues suggested that the poison content in the Jatropha fruit might impact on waste and by-products (soap). In order to restart production it is necessary to increase productivity including through new imported Jatropa varieties; improved post-harvest
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TA-8356 MYA: Myanmar – Energy Sector Assessment, November 2016 technology and processing techniques, and by facilitating technology exchange with international organizations. The solutions might include improving waste for example in bio digesters, and to blend the local fruit with a less toxic variety. These, together with MOST’s improved extraction technology, might justify a review in pilot installations. 5.5 Geothermal
84. Geothermal energy has considerable potential for commercial development in Myanmar. There are five distinctive igneous alignments related to geographical features of the country that stretch from North to South. Hot springs are found in the Kachin, Shan, and Kayah States; in the pouthern part of the Rakhine State in Kyaukphyu; in the Central Myanmar Area: and in the Shwebo-Monywa Area, especially in the Mon State and Taninthayi Division.
85. A total of 96 sites have been identified, including 43 sites investigated by MOGE in 1986 (Appendix C, Figure C.3.). Additional work is required to exploit the geothermal potential, either for electric power generation or steam for industrial applications. During the investigation in 1986, surface and subsurface temperatures were measured and recorded, and chemical analysis was performed on stream and water samples—the data is listed in Table 19.
Table 19 Geothermal resources in Myanmar, 2008
State/Division Number Average Surface PH of Hot Temperature Degree Number Springs Celsius 1 Kachin State 2 - - 2 Kayah State 5 - - 3 Kayin State 15 48.61 (37.78–61.67) - 4 Sagaing Division 10 32.41 (29.44–48.89) 7.8 5 Taninthayi Division 19 51.46 (37.78–51.67) - 6 Mgway Division 5 40.78 (32.22–48.89) 7.6 7 Mandalay Division 3 36.65 (30.56–40.00) 6.5 8 Mon State 19 51.08 (37.78–65.8) 7.7 9 Rakhine State 1 - - 10 Shan State 17 43.50 (27.8–61.7) 6.9 Notes: Figures in parentheses indicate the range of average surface temperatures for a group of springs when data is available; pH is a measure of the acidity or basicity of an aqueous solution. Source: Myanmar Engineering Society, 2014 5.6 Immediate issues for renewable energy
86. Renewable energy projects have relatively high upfront costs, but low operational costs because the fuel is free. Financing of projects requires a larger amount and on longer terms than is usually available in Myanmar. Subsidized energy prices, especially to the rural communities and agriculture sector, where renewable energy technology (RET) options are most often targeted, makes it difficult for RET to compete on a financial basis with conventional energy supply options.
87. There is lack of consumer awareness about the benefits and opportunities of RET and little stakeholder/community participation in energy choices and renewable energy projects. Combined with a lack of institutional development and capacity in government agencies, these circumstances present barriers to prompt development of renewable energy projects. Earlier barriers to the import of new RET also have resulted in delays in the adaptation of new and cost effective developments in many advanced RET options.
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5 POWER SECTOR
88. The electricity consumption is growing rapidly. In the last two years alone growth has been around 30%. In 2014 electricity consumption per capita was about 160 kWh, which remains the lowest among the 10 ASEAN countries—although the figure has doubled in the last decade. The low national average per capita electricity consumption is due to the low electrification rate, limited industrial development, and the lack of investment. The country’s average electrification grew from about 16% in 2006 to 26% in 2011 and to about 30% in 2013. Yangon City has the highest electrification ratio of approximately 70%, followed by Nay Pyi Taw, Kayar, and Mandalay. The remaining rural areas are still poorly electrified averaging less than 20%. In Rakine state it remains under 10%.
89. In September 2016 generating capacity in Myanmar totalled 4,516 MW of which 2,701 MW is from hydro, 942.90 MW is gas turbine-based generation, 753 MW Is gas engine-based and 120 MW from coal fired plants.7 The total annual generation for 2014 was in total: 14,156 GWh of which 62% was from hydro, 35% from gas, 2% from coal and the rest other sources.
90. Myanmar Electric Power Enterprise (MEPE) is responsible for the development and implementation of the transmission network, covering the voltage levels of 66 kV, 132 kV, and 230 kV. Distribution systems consist of lower voltage levels—33 kV, 11 kV, 6.6 kV, and 0.4 kV. Two distribution enterprises operate the distribution systems in the country. The Yangon City Electricity Supply Board (YESB) is responsible for the supply of electricity to consumers in Yangon City. The Electricity Supply Enterprise (ESE) covers the rest of the country comprising 13 states and regions, including off-grid generation and distribution. In September 2014 MOEP disclosed that YESB and ESE are soon to be corporatized.
91. Technical and non-technical losses of the transmission and distribution system were as high as 30% of generation in 2003, and have been reduced to 20% in 2013. These still high losses and low electrification ratio will require extensive improvements to the country’s transmission and distribution network. Improvement is currently taking place with assistance from the ADB, amongst others 6.1 Electricity production and use
92. Figure 18 shows the total electricity installed capacity in Myanmar from 2001 to 2015, with hydropower currently representing around 66% of total capacity. The installed capacity of hydro has increased by more than four times from 2006 to 2015, while natural gas, thermal, and diesel power plants have remained relatively unchanged in the same period. The total electricity generation has doubled over the last decade, particularly as a result of increasing hydropower generation, which now represents more than 66% of total electricity generation. Developments in electricity generation by source in the period FY2001-FY2015 is given in Figure 19. Total generating capacity advanced to 4,805 MW in 2015.
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Figure 11 Electricity installed capacity in MW, FY2001–FY2015
6,000
5,000
4,000 RE Coal 3,000 Gas Diesel 2,000 Thermal Installed Capacity(MW)
1,000 Hydro
0
RE = Renewable energy Source: Ministry of Electricity and Energy, 2016.
Figure 12 Electricity generation by source in GWh, FY2001–FY2015
16,000
14,000
12,000 RE 10,000 Coal 8,000 Gas
Generation (GWh) 6,000 Diesel
4,000 Thermal Hydro 2,000
0
RE = renewable energy. Source: Ministry of Electricity and Energy, 2016.
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6.2 Generation facilities—fossil based
93. The total installed capacity at mid-2016 is 4,764 MW, with 2,820 MW (59.2%) from hydropower, 1,824 MW (38.3%) from gas, and 120 MW (2.5%) from coal. MOEE owns about 75% of total installed capacity and the rest owned by private sector. The available capacity is approximately 50% of the installed capacity. Gas and coal power plants are not fully operated due to poor maintenance, and during the dry season hydropower is curtailed. Of the hydropower capacity, 520 MW is reserved for export to the PRC. Nine new projects are forecast to be added by the end of 2016, with MOEE adding 220 MW and the private sector adding 300 MW. Various other projects of about 1,500 MW are under development for completion by 2020.
94. Myanmar Electric Power Enterprise (MEPE) under MOEE operates and maintains nine gas-based power generation plants; four are in Yangon (Ywama, Thaketa, Ahlone and Hlawga). Of the nine gas-based power plants, six are open cycle gas turbines (278 MW) and the other three are combined cycle gas turbines (CCGT) that total 400 MW. While the total installed capacity of these plants is 678 MW, the actual capacity is only 427 MW (63%). This is because the Mann plant with 37 MW installed capacity stopped operation in 2005 and the two remaining CCGT power plants have been de-rated because the steam turbines are unable to achieve the designed condenser vacuum.
95. To address the power shortages in Yangon, four new power plants have been implemented with an aggregate capacity of 227 MW, and an additional 144 MW has recently been added (Mandalay and Mon States) with a total capacity of 371 MW. The new projects have been implemented by the private sector under a build-operate-transfer (BOT) arrangement. MEPE provides the gas free of cost for operation of the projects, and has committed to buy 350 GWh annually from each of the three gas engine-based power projects and 85% of the output from the CCGT plant. This energy available from these private sector BOT projects has increased the available grid generation capacity by approximately 20%. MEPE has also obtained (as gift from Thailand) a used gas turbine power plant (2 x 120 MW) for installation at Ywama; some of the major parts have already arrived at site and foundation civil works was in progress in 2014. Some information on this is listed in Table 17.
96. There is only one mine-mouth lignite coal-based power plant, the Tigyit plant, with a rated capacity of 120 MW. The Tigyit power plant operates at below 40% of capacity, and thereby not at an efficient level (75-80% capacity) because the quality of coal input is far below the original process design. The lignite mine has about 20 million tons of proven reserves, and the project has already used about 5 million tons. There is an insufficient proven coal reserve for long term planning. The plant is located far from the coastline (east of Nay Pyi Taw) so importing coal for blending is not a feasible option. MOEE has announced that the Tigyit power plant is open for private investors to establish a joint venture. 6.3 Generation facilities—hydropower
97. Hydropower projects with a capacity below 10 MW are described in Section 6.1. In total, MOEP is operating 32 mini hydro projects with a total installed capacity of 31 MW (Appendix D, Tables D.2 and D.3; and Figure D.1 and Table D.11).
98. On the basis of Myanmar’s endowment of topography and monsoon rainfall, a World Bank Study in 1995 estimated hydropower potential resources at as much as 108,000 MW installed capacity potential. Myanmar has four main river basins—Ayeyarwaddy, Chindwin, Thanlwin, and Sittaung—which could potentially provide a significant amount of hydropower to the country.
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99. The Hydropower Generating Enterprise (HPGE) under MOEP is responsible for hydropower and coal-based electricity generation and there are 25 hydropower plants in operation as shown in Table 21. The oldest power plant was constructed in 1960, another two plants in 1985 and 1989, three plants were constructed in 1992-1998, eight hydropower plants were constructed in 2000-2010, and six more hydropower plants have been constructed recently. The total hydropower installed capacity, including installed capacity for export, is 3,151 MW (as of September 2014). The largest unit (Yeywa) is 197.5 MW, and only four hydropower plants have units larger than 50 MW, which suggests a medium level of technology. The Baluchaung(2) hydropower project (168 MW) has been in operation for over 50 years. A major repair and renovation plan is being prepared for overseas development assistance from the Government of Japan.
100. The recurrent problems of capacity shortfall especially in the dry season persist. The Ministry expects a maximum demand in 2015 of 2,400 MW, an increase of approximately 400 MW form the maximum in the dry season 2014 (February–May). To fill this gap MOEE has been adding generation capacity by using natural gas from Shwe, Zawtika, and Yadana. MOEE added a 50 MW gas engine at the Kyauk Phyu power plant to double the current capacity and installed a new 80 MW gas engine near Myingyan power plant. MOEE has also started generating electricity at Ywama plant, using a 240 MW gas turbine provided by Thailand. MOEE is also upgrading existing gas turbines in Shwedaung and Myanaung. 6.4 Transmission network
101. The MEPE transmission system currently comprises an interconnected overhead grid of 230 kV, 132 kV, and 66 kV that interconnects with all generation stations. A 454-kilometer (km) 500 kV transmission line is under construction from north to south with bilateral assistance. The first 146 km from Belin (near Mandalay) to Taungoo (Phase I) is assisted by the Government of Serbia, the 188 km stretch from Taungoo to Karmarnat (near Bago) (Phase II) is financed by the Government of the Republic of Korea ($100 million), and the final 120 km from Karmarnat to Hlaingtharyar in Yangon (Phase III) will be financed by the Government of Japan. This upgrade will be completed by 2019, and it will contribute to the stability of the grid as well as ease the power supply constraint in the Yangon region. The existing transmission lines are shown in Table 20.
Table 18 Existing transmission lines, 2013
Voltage Number of Circuits Circuit (Kilometers)
230 43 3,300 132 37 2,160 66 - 4,003 Total 80 9,193 Source: Ministry of Electricity and Energy, September 2014.
102. Transmission lines are mostly single circuit, with relatively few double circuit connections. Structure designs are mostly lattice steel towers, with a variety of portal and conventional free standing towers, some with overhead lightning protection earth wires. Lines are generally in good condition. Last year (2013) transmission losses had fallen to below 5%, compared to around 7% previously, as shown in Table 21.
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Table 19 Transmission losses, 2013
Year Net transmitted Net received energy Energy losses Losses (%) energy GWh) Distribution side (GWh) (GWh)
2013 11,823 11,286 538 4.51 2012 836 777 59 7.11 2011 9,812 9,041 771 7.86 2010 7,614 7,042 573 7.52 2009 6,665 6,167 499 7.48 2008 6,281 5,921 361 5.74 2007 6,007 5,588 419 6.93 GWh = gigawatt-hour. Source: Ministry of Electricity and Energy, September 2014.
6.5 Distribution network
103. Distribution in Myanmar comprises a network of 33 kV, 11 kV, and 6.6 kV lines emanating from the grid and zone substations to connect to the distribution transformers to provide single and three-phase 400/230 volt supply to the customers. The existing distribution lines are shown in Table 22.
Table 20 Existing transmission lines, 2013
Voltage (kilovolts) Length (kilometers) Capacity (million volt - ampere)
33 7,606 4,772 11 15,149 5,230 6.6 1,346 1,499 0.4 22,099 - Total 46,200 11,501 Source: Ministry of Electricity and Energy, September 2014.
104. The 33 kV lines are used to connect 33/11 kV zone substations, but they could be used in the future to directly supply 33/0.4 kV distribution transformers. The 6.6 kV systems, mostly in Yangon, is a relic voltage and needs to be phased out as soon as practical in order to improve the efficiency of the distribution network and to reduce losses. It is noted that some of the more recent distribution transformers purchased for the 6.6 kV systems also have an 11 kV winding to facilitate the future changeover to 11 kV. Sizes of the distribution transformer vary from 100 kilovolt amperes (kVA) up to 1,000 kVA and are mostly in reasonable condition, although oil leaks were not uncommon. In urban areas some transformers are installed indoors in substation buildings; otherwise most are either ground mounted or on single or two pole structures.
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105. The low voltage network comprises a 400/230-volt three-phase four-wire system with the neutral solidly grounded. Frequency is nominally 50 hertz (Hz). Construction is generally overhead, base, open-wire construction using concrete poles. There is also some underground distribution in Yangon City area. Much of the construction is old and of insufficient cross-section for present-day loads. Some construction designs are outmoded; for example conductor guards for road and railway crossings (a practice that has been superseded in most countries now, as modern protection systems prove more reliable). Myanmar has not yet introduced the aerial bundled conductor. Distribution losses have shown improvement over the last 5 years, but they are still high, as indicated in Table 23.
Table 21 Distribution losses
Year Losses %
2013 15.4 2012 18.2 2011 19.2 2010 19.6 2009 19.4 2008 22.3 2007 21.6 Source: Ministry of Electricity and Energy, September 2014.
106. Electricity consumption in Myanmar is about 140 KWh per capita per year, while in Thailand it is more than 2,000 KWh. Myanmar’s electrification rate is about 30% while Thailand exceeds more than 90%. Figure 20 below illustrates this through a satellite photograph taken at night demonstrates that Myanmar’s growth in electricity generation capacity over the period from 1992 to 2010 has been minimal, and is confined mainly to a few urban areas. The development of electricity in Myanmar compared to the neighboring countries is conspicuously slow.
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Figure 13 Satellite photograph of Myanmar at night time 1992 and 2010
Source: McKinsey Global Institute Report, 2013.
107. Yangon City has the highest electrification ratio of approximately 80%, followed by Nay Pyi Taw, Kayar, and Mandalay. Rural areas are still poorly electrified, averaging less than 20%. Electricity consumption in states and regions reflects this and is illustrated in Table 24, which clearly illustrates the vast difference in electricity availability between the urban people of Yangon and Mandalay and the rural people of regions such as Rakhine and Chin states.
Table 22 Electricity consumption in States/regions: April 2013–March 2014
Regions/States Electricity Share of Consumption, GWh total consumptio n (%) YANGON 5,031.5 49.8 MANDALAY 1,740.8 17.2 NAY PYI TAW 558.7 5.5
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MAGWE 493.9 4.9 SAGAING 448.0 4.4 IRRAWADDY 324.3 3.2 BAGO (Region East) 280.4 2.8 SHAN (South) 276.0 2.7 MON 209.5 2.1 BAGO (Region West) 199.6 2.0 SHAN (North) 183.6 1.8 KAYIN 157.8 1.6 SHAN (East) 67.8 0.7 KACHIN 49.9 0.5 KAYAH 36.0 0.4 TANINTHARYI 29.1 0.3 RAKHINE 20.3 0.2 CHIN 4.7 0.0 GWh = gigawatt-hour. Source: Ministry of Electricity and Energy Power, September 2014. 6.6 Power sector institutional arrangements
108. The Ministry of Electricity and Energy (MOEE) is the result of a merger between the former Ministry of Electric Power (MOEP) and former Ministry of Energy (MOE). For electricity sector, there are six departments under MOEE as follows. ° Department of Electric Power Planning (DEPP) is responsible for the Policy and Planning of the Electric Power Sector Development including generation, transmission and distribution ° Department of Electric Power Transmission and System Control (DPTSC) is responsible for the Design, Construction, Operation and Maintenance of the Transmission Line and Substations ° Department of Hydropower Implementation (DHPI) is responsible for the Design and Construction of the Hydropower Projects ° Electricity Supply Enterprise (ESE) is 100% state-owned Enterprise and responsible for the Power Distribution to the retail users of the states and regions in the whole country excluding Yangon and Mandalay Regions ° Yangon Electricity Supply Corporation (YESC) is 100% state-owned Corporation and responsible for the Power Distribution to the retail users of the Yangon Region ° Mandalay Electricity Supply Corporation (MESC) is 100% state-owned Corporation and responsible for the Power Distribution to the retail users of the Mandalay Region
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109. The former Ministry of Electric Power (MOEP) was in charge of all activities relating to electricity from generation to transmission and distribution. It was responsible for hydropower, thermal power, and transmission and distribution. These areas of responsibility were previously split between two ministries that merged in 2012. Within MOEP, there were three operational entities: – The Myanmar Electric Power Enterprise (MEPE), which played the role of the single buyer and was responsible for the transmission network and gas-fired power plants. – The Hydropower Generation Enterprise (HPGE), which managed hydropower and coal generation and the Yangon City Electricity Supply Board (YESB) that supplied electricity to consumers in Yangon. – The Electric Supply Enterprise (ESE), which was responsible for the supply of electricity to consumers in the rest of Myanmar The organization and function of former MOEP is illustrated in Figure 21.
Figure 14 Organization and functions of the Ministry of Electric Power (Before April 2016)
Source: ADB Energy Sector Initial Assessment, 2012.
110. The MOEE has been permitting IPP producers in large hydropower projects, coal fired power plants and large gas-based power generation projects. Examples are Upper Baluchaung hydropower plant, Thande Chaung hydropower project, Moulmein GT, Thaketa GT, Ahlone GT, Kyaukse GT and Tigyit coal- fired power plant. But the tariff charged to consumers and the purchasing price from IPP to MOEP is still a hurdle.
111. Institutional reform and the corporatization of state-owned enterprises are an important part of the energy reforms. The main goal of corporatization is to allow the government to retain ownership of the companies, but still enable it to run them as efficiently as its private sector counterparts. The separation of maintenance and operation functions of the YESB and MESEB from MOEP is important in the process of increasing efficiency (e.g. by reducing network losses) and to ensure the transparency. YESB and MESB have been corporatized into Yangon Electricity Supply Corporation and Mandalay Electricity Supply Corporation.
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112. Myanmar over the last decade has expressed interest in making electricity exports to the neighbouring countries. The driving motivation for power trade appears to be the potential for export earnings and also for expanding production capacity for domestic use. Moreover, the country has large unexploited hydro resources that are of interest to Chinese and Thai developers.
113. At present Myanmar exports electricity to the PRC that is generated from only two hydropower plants (from Tarpein 1—221 MW out of a 240 MW installed capacity and from Shweli 1—300 MW out of 600 MW capacity). The annual production is approximately 2,300 GWh. In August 2014 the Chinese firm building two hydro projects (Power Construction Corporation of China) indicated that it could renegotiate the terms of its contract in order to allow more power for consumption in Myanmar. 6.7 Electricity tariffs
114. The MOEP generates electric power from hydro, natural gas, and coal that involve different costs of production as depicted in Figure 22. Only in April 2014 were rates raised by an average of 40%, except for poor consumers who consume 100 KWh or less per month. A special higher tariff applied to foreigners was removed as well. Table 28 shows the present electricity tariff of April 1, 2014. Nevertheless, the April 2014 increase was not sufficient to cover the cost of production of gas-based electricity generation even though MOGE supplies gas at a price lower than MOGE’s purchasing price from offshore gas fields.
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Figure 15 System and structure of electricity prices setting in Myanmar
Coal company MOGE Ministry of Natural Resources and Environmental Conservation Ministry of Electricity and Energy Free Electricity (15%) IPP ( Coal:30,000 kyats/ton) - UPP (Yawma) (Gas 7.5 USD/MMBTU)
- MCP (Hlawga) - CIC (Thaketa) EPGE - Belu Chaung EPGE IPP (Hydro) IPP (HYDRO) (Gas/oil/thermal) No. 3, etc (Hydro/coal thermal) Thaut Yae Khat Shwe Li (22.8%)
Generation (57.2%) (3.5%) (12.3%) (2.1%)
2.0 7.13 3.3 3.4 cents cents cents cents Electricity
/kWh /kWh /kWh /kWh Partly
EPGE = Single Buyer
Transsmission
57 kyats/kWh 52 kyats/kWh (5.8 cents/kWh) (5.3 cents/kWh)
YESC MESC and ESE (Yangon) (other than Yangon) Distribution
Residence: 35–50 Residence: 35–50 kyats/kWh kyats/kWh Industrial: 75–150 Industrial: 75–150 kyats/kWh kyats/kWh
Consumers
EPGE = Electricity Power Generation Enterprise, ESE = Electricity Supply Enterprises, IPP = Independent Power Producer, MESC = Mandalay Electricity Supply Corporation, MOGE = Myanmar Oil and Gas Enterprise, YESC = Yangon Electricity Supply Corporation. Source: ADB update from “The National Electricity Master Plan” Final Report, September 2014, prepared by NEWJEC, Kansai Electric Power. 115. By the April 2014 increase in tariffs the government has started the process of a gradual removal of energy subsidies—both direct and cross subsidies. Subsidies distort price signals and fail to reflect the true economic cost of supply, and lead to inefficient energy production. Removing subsidies encourages optimal behaviour, not only by final consumers, but also by energy companies since prices that reflect economic cost will encourage companies to produce, develop, and distribute energy in a more efficient way. However, the April 2014 increases in tariff provoked a social reaction among citizens. Thus, the government needs to prepare for a gradual and sequenced removal of indirect subsidies, together with a
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Table 25 Electricity tariff; October 2012 and April 2014
Electricity Electricity Electricity Electricity tariff tariff tariff tariff April 2014 1999 2006 2012 Electricity usage per Kyats per Kyats per Kyats per Kyats per Dollars ** month by KWh KWh KWh KWh per KWh
Household use:
0.5 1 – 100 KWh 25 35 35 0.035 (1-50 kWh) 2.5 101 – 200 KWh 25 35 40 0.040 (51-200 kWh)
201 and above 25 25 35 50 0.050
Business use:
1–500 KWh 25 50 75 75 0.075
501–10.000 KWh * * * 100 0.100
10.001–50.000 KWh * * * 125 0.125
50.001–200.000 KWh * * * 150 0.150
200.001–300.000 KWh * * * 125 0.125
300.001 KWh and * * * 100 0.100 above
KWh = kilowatt-hour. Note: * refers to all business use billed at the single existing tariff rate. ** Refers to values based on exchange rate October 25, 2014. Source: Ministry of Electricity and Energy, September 2014. 6.8 Electricity legislation
116. The electricity sector in Myanmar has always been in government hands and the 1984 Electricity Law continued the practice by mandating the government to be responsible for generation, transmission, and distribution of electricity. After many years of operating at a loss with a heavy burden of subsidy and the lack of appropriate investments in electricity capacity expansion, the government as a part of the reform process decided to transform the power
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117. The new Electricity Law of 2014 (approved October 2014), differentiates projects into “small” (up to 10 MW), “medium” (between 10MW to 30 MW) and “large” (upward of 30 MW). The permission for private sector involvement in the implementation of projects according to this categorization is: - off-grid small scale projects: Free, - mid-sized projects: Require approval of state or regional governments, and - large-scale projects: Require approval by the national government. The draft Law further permits approvals for expansions of electricity facilities and construction of transmission lines in accordance with the law.
118. The new Electricity Law stipulates the creation of the Electricity Regulatory Commission (ERC), which will formulate a national electricity policy, devise a modern and systematic means of setting power rates, and advise relevant ministries on systematically developing electricity-related infrastructure. All procedural requirements in the draft law appear to encourage development of IPPs with involvement of both overseas and local partners, including in BOT projects; and also the corporatization of the YESB and MESB.
119. On electricity rates, the draft Law proposes that “suitable” rates be set by the ministry on the recommendation of ERC and in consultation with the government, “according to the Region”. The draft law, however, makes it clear that the intention of “fixing a suitable rate” is “to promulgate equitable, transparent and reasonable rules and regulations for fixing electric power rates which are economically viable and sufficient to cover investment costs”. This implies a significant departure from previous practices of subsidizing power for production of most government-manufactured products. 6.9 Immediate issues for the power sector
120. MOEE is facing a difficult situation in its business of electricity generation, transmission, and distribution in good part because losses from subsidizing electric power rates are resulting in insufficient investment for modernization and expansion of its infrastructure. Most hydropower plants are storage reservoir types and run under capacity during the dry months causing power outages. In addition, gas power plants are not operating at full capacity either— due to age, insufficient gas supply, or bad economics of running the plants with “contract” gas.
121. The government is pressing for a rapid expansion of the electricity infrastructure, aiming at almost universal accessibility to electricity by 2030. In order to fulfil the vision of universal electrification by 2030, the World Bank estimates approximately 7.2 million household connections will be required within the next 16 years. The National Electrification Program (NEP) of September 2014 is based on a geo-spatial roll out a plan for universal electrification by 2030. The proposed NEP calls for the following roadmap and intermediate milestones to achieve universal access: 50% in 2020, 75% in 2025, and 100% in 2030. The World Bank has already pledged partial funding for the National Electrification Program that would require something like $5.8 billion without including generation and transmission facilities. Further investment will be needed in generation and transmission systems in addition to investment in the medium and low voltage networks required for the proposed roll-out, as well as investment in off-grid solutions. Additional demand from newly connected customers will require approximately 2,600 MW of additional generation capacity to be built in the period. The World Bank as of September 2014 has committed investment of $2.0 billion for the implementation the electrification plan.
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122. The new Electricity Law that accommodates private sector investments in electricity sector is not yet passed, and the MOEE has not yet drawn up a least cost and realistic program for expanding its infrastructure. Several planning activities involving the electricity sector are ongoing, and an alignment of data and projections between these efforts and the MOEP’s own planning scenario is needed. Efforts include: World Bank work on the National Electrification Plan (NEP); work on a National Electricity Master Plan being done by JICA, NEWJEC, Inc., and the Kansai Electric Power Company; and ADB work on 20-year Energy Master Plan (EMP). These planning activities have been completed in 2016.
123. MOEE is facing major challenges including: - Low electrification rate with persistent power supply outages. - High technical and nontechnical losses due to poor maintenance of transmission and distribution systems. - Insufficient technical and economical capacity in the sector. - Inadequate planning functions including supply and demand projections and analysis of alternative supply options. - Severe subsidies in the sector that distort development.
6 ENERGY EFFICIENCY
124. Introduction of a comprehensive Energy Efficiency and Conservation (EE&C) policy will advance energy security. Myanmar’s rapidly rising energy demand can be better managed to reduce the need for capacity expansion. Increasing energy efficiency—to ensure more economic value from each primary energy unit consumed—has significant economic and environmental benefits. Using energy more efficiently reduces the need to build new power plants and lowers fuel import bills, potentially freeing up government funds for spending in social and other sectors of the economy. Increased investment in energy efficiency will help make the energy sector more sustainable, affordable, and reliable. A growing number of countries in the region such as the People’s Republic of China, India, and Thailand are already implementing energy efficiency initiatives as a least-cost solution to meeting rising power demand. It is evident that adoption of demand side management (DSM) strategies and programs in all customer sectors in the economy would go a long way of addressing the current shortfall in electricity generation during the rainy season that results in load shedding.
125. The vision laid down in the National Energy Policy can only be achieved through efficient and sustainable use of the available energy resources. Energy efficiency and conservation (EE&C) will play a critical role in addressing energy security, environmental, and economic challenges facing Myanmar. The initial target for energy efficiency set by MOEE in 2008 was a 5% reduction of the total energy consumption from the 2005 level by 2015 and 8% by 2020. The basis for these targets was in line with targets set by ASEAN. However, the energy policy framework is aimed at: maintaining the status of achieving energy independence; promoting of wider use of new and renewable sources of energy; promoting energy efficiency and conservation; and promoting the use of alternate household fuels.
126. National EE&C Policy, Strategy and Roadmap for Myanmar, which was supported by ADB and approved by the government in 2016, identified the following priority areas: - Energy efficiency in industry - Energy efficiency in the commercial sector - Energy efficiency in the residential sector (urban and rural) - Energy efficiency in the public sector (buildings, hospitals, schools and public lighting)
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127. The National EE&C Policy, Strategy and Roadmap also suggests that the highest average energy savings, percentage wise, were for the iron and steel industry (45%), pulp and paper (65%), and sugar mills (35%) due to their high electrical and thermal demands. Although the percentage saving potential for the thermal power plants is relatively low (4%) compared with other industries, the actual generation saving (GWh) would be extremely significant. A 4% improvement in energy efficiency of the thermal power plants would avoid a generation loss of 25.6 GWh. It also points out the electricity saving potential of various sectors of the economy—industrial by 20%, commercial by 25%, residential by 30%, and public by 25%.
128. Based on the calculated energy saving potential, the National EE&C Policy, Strategy and Roadmap recommends the followings: - Reduce the national electricity demand from the baseline demand by 12% in 2020, by 16% in 2025, and by 20% in 2030; - Reduce the biomass consumption from baseline demand by 2.3% in 2020, by 5% in 2025, and by 7% in 2030; and - Reduce national CO2 emissions by 78,690 tons in 2020.
129. The National EE&C Policy, Strategy and Roadmap highlights the basis for including EE&C in all sectors of the economy: industrial, commercial, and social. However, the study pointed out the requirement for improved and more comprehensive data, and the need for raising the capacity of stakeholders, institutions, and resources for successful implementation of the strategy.
130. Ministry of Industry (MOI) is the lead agency for the implementation of energy efficiency efforts and its current work plan includes: - To develop required legal framework for energy efficiency activities; - To set up a dedicated department under MOI for successful implementation of energy efficiency activities; - To promote public awareness raising and capacity building for energy efficiency activities; - To foster implementation of a program by cooperating and collaborating with experienced regional and international organizations; and - To support national energy security and sustainable development with energy efficiency activities.
131. In April 2014 an Energy Efficiency and Conservation Division (EECD) under the Directorate of Planning at the MOI was established to strengthen the institutional part of energy efficiency and conservation (EE&C) effort. The EECD will be responsible for coordinating all EEC activities and was established following its proposal in the National Energy Policy.
132. Biomass (firewood/charcoal) accounts for slightly more than half of total energy consumption in FY2013, and is primarily consumed by the rural sector. The adoption of efficient technologies especially in cooking would make a significant contribution toward providing an affordable and reliable energy supply to those living in rural areas, thus improving the quality of life. There is potential for a market transformation to fuel-efficient stoves by addressing the initial cost barriers. In addition, the options for fuel switching from fuel wood to LPG for cooking could also be considered.
133. The residential sector is currently the major user of biomass (fuel wood/charcoal), which is mainly used for cooking in both rural and urban households. In terms of electricity, the residential sector accounts for 44% (FY2011–2012) of the total electricity consumption, and this share is expected to be-maintained or increased as a result of the rural electrification program.
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134. The current market penetration of energy efficient (EE) products and appliances (lighting, air conditioning, refrigerators and other home appliances) is very low. Most electrical products are imported, mainly from the PRC and India and have no certification on energy performance. Energy rated products from Thailand are available in some stores, but their market share is extremely low due to the high cost differential between these and the low efficiency products from the PRC. There is potential for significant energy savings through the introduction of minimum energy performance standards (MEPS) and energy labelling schemes similar the experience of most countries in the region.
135. It is understood that LPG is rationed to the household sector with each public sector employee allocated a quota (5 kg) of LPG each month, which is sold at a subsidized price by approved distributors. In spite of this there is a general preference for using biomass (fuel wood) for cooking even in the urban sector. There is potential to promote the use of LPG for cooking, especially in the urban sector, through an awareness campaign.
136. The commercial sector includes office buildings, hotels, restaurants, shopping malls, and supermarkets. It is envisaged that the key energy uses in this sector are electricity and LPG. Currently, this sector accounts for 21% of the total electricity consumption, and demand is expected to increase significantly with development in Myanmar, supported by aggressive electrification plans.
137. Currently, there are no codes that apply to commercial buildings that relate to energy efficiency, either for new buildings or refurbishments. Energy efficiency buildings codes (EEBC) have been adopted in many countries in the region, namely, India, Thailand and Viet Nam; and regulations are have been prepared by the government for adoption. In addition, Green Building certification programs—similar to the US Green Building Council’s Leadership in Energy and Environmental Design (LEED) effort—have been used in several countries (India and Sri Lanka) where savings averaging 20% of life-cycle costs have been estimated. Initial observations in the commercial sector (such as in office buildings and hotels) show a high usage of inefficient fluorescent lighting and electric hot water systems. Case studies from countries in the region show that significant savings could be achieved through the use of high efficiency fluorescent and LED lighting and solar hot water systems.
138. The public sector is categorized as “Government (office use)” in the electricity tariff schedule and it covers office buildings, schools and hospitals. It is observed that government office complexes in Nay Pyi Taw were built in 2003 and the electrical equipment, especially lighting and air conditioning, use old technologies with high consumption. Case studies in the region show that EE lighting technologies can save around 25% in lighting consumption and around 50% by the use of inverter-type AC units instead of the current units that do not have any performance standards and ratings.
139. The industrial sector represents 35% (FY2011-2012) of the total electricity consumption. The contribution of the industry sector in current GDP is only 26%, and the target is to increase this to 35% to 40% primarily through private sector investment. The removal of existing subsidies will provide an incentive to undertake EE&C interventions. The potential for energy saving in the industrial sector can only be determined once information on current industrial processes is available. Recent energy audits conducted in the steel, cement, brick, and ceramic sectors in Viet Nam have identified several EE process technologies that could be applicable in Myanmar.
140. Increased investment in energy efficiency will help make Myanmar’s energy sector more sustainable, affordable, and reliable. A growing number of countries in the region such as the PRC, India, and Thailand are already implementing energy efficiency initiatives as a least-cost solution to meeting rising power demand. Tapping the energy efficiency potential in
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TA-8356 MYA: Myanmar – Energy Sector Assessment, November 2016 the existing industrial stock is essential in order to meet the energy efficiency objectives of the government.
141. According to the National Energy Policy of 2013 (The Republic of the Union of Myanmar, National Energy Management Committee, National Energy Policy 2013) a two- pronged approach is proposed focusing on: (a) the development and implementation of viable technical and business models; and (b) strengthening the implementation of existing policies and regulations for promoting energy conservation investments. In the National Energy Policy, 2013 is on page 104 highlighted that “A well-conceived and systematic program of industrial energy improvement and conservation will be initiated. The key energy-intensive industrial subsectors and energy conservation projects with significant potential for energy efficiency improvements include: (a) electricity generating power utilities, (b) petroleum refineries, (c) natural gas gathering and transmission pipeline systems, (d) fertilizer and chemicals, (e) pulp and paper, and (f) cement. The energy conservation program in these industrial subsectors will have to include: (i) provision of modern process technologies replacing the old and obsolete, (ii) provision of energy saving industrial technologies such as more efficient industrial boilers, kilns, and heat exchange systems; (iii) recovery and utilization of by-product gas, waste heat and pressure; (iv) installation of highly efficient mechanical and electrical equipment, including motors, pumps, heating and ventilation equipment; and (v) industrial system optimization to reduce energy use”. 7.1 Immediate issues for energy efficiency and conservation
142. There is a large financing gap for energy efficiency and conservation investments in the industrial sector, especially for medium and large-sized energy efficiency projects. While the majority of industrial energy efficiency investments are financially viable, most concerned enterprises with very low energy cost in overall costs per unit of output would rather invest in business expansion than energy efficiency. The financial incentive for EE&C investment is also largely lacking in the commercial and other sectors.
143. In order to design and implement such an ambitious operational EE&C program there is an urgent need for improved and comprehensive data. Also, the capacity of stakeholders, institutions, and resources must be substantially increased for the successful implementation of the identified EE goals that have been set for the next fifteen years.
7 CLIMATE CHANGE
144. The phenomenon of global warming driven by fossil fuel consumption places the fragile environment in Myanmar at the frontline of vulnerability to the adverse impacts of climate change, on water supply, agriculture output, natural disasters, and especially the sea level. Myanmar has suffered the impact of climate change through a number of disasters including the most damaging one on 2 May 2008—the Nargis Cyclone claiming more than 130,000 lives in the southern coastal area of the country.
145. Myanmar ratified United Nation Framework Convention on Climate Change in 1994 and the National Commission for Environmental Affairs (NCEA), which is now under the Ministry of Environmental Conservation and Forestry, was charged with responsibility for climate change matters. Although a formal policy on climate change is not in place yet, the government has adopted the Environmental Conservation Law in March 2012 and a Disaster Management Law in July 2013. Requirements for environmental impact assessments (EIA) which covers all industries have been in place and similar regulations for social impact assessments (SIA) are under preparation.
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146. There are still many challenges ahead for Myanmar to cope with the consequences of climate change in terms of policy guidance as well as institutional and capacity requirements. The government will undertake the deployment of low-carbon technologies in a range of sectors including energy supply, transport, buildings, industry, agriculture, forestry, and waste management.
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APPENDIXES A. Oil and Gas Figure A.1. Location of Gas Fields in Sedimentary Basins of Myanmar
Source: ADB, Energy Master Plan, 2016, ADB referring to the Ministry of Energy, 2011
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Figure A.2. Myanmar Blocks Map
Source: ADB, Energy Master Plan, 2016 referring to Myanmar Oil and Gas Enterprise 2011
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Figure A.3. Location of Existing Gas Fields, Pipelines and Gas-Fired Power Plants
Source: ADB, Energy Master Plan, 2016 referring to ADB Consultant compilation based on JICA, MOE, JOGMEC and JEPIC data.
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Figure A.4. Myanmar Product Sharing Contract (PSC) Calculation
Source: ADB, Energy Master Plan, 2016
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Table A.1. Onshore and Offshore Gas Production (2011/12 to 2014/15)
Period Gas Field Production Sales Own Use Vent/Flare Line Pack Unpack
Export Domestic Total
mmSCF mmSCF mmSCF mmSCF mmSCF mmSCF mmSCF mmSCF
2011-12 Onshore 2,840 53 1,344 23,948 21,058 21,058
Yadana 2,190 458 306 368 287,385 218,336 66,460 284,796
Yetagon 2,616 109 4,227 153,602 146,649 146,649
Total 7,646 620 5,878 368 464,935 364,985 87,518 452,503
2012-13 Onshore 391 16 92 29 22,635 13,833 13,833
Yadana 2,897 485 3,382 - 288,931 217,333 67,728 285,060
Yetagon 4,397 1,940 4,278 155,439 144,823 144,823
Total 7,686 2,442 7,752 29 467,005 362,156 81,561 443,717
2013-14 Onshore 350 39 124 8 21,819 12,370 12,370
Yadana 2,851 451 - - 270,579 197,826 69,411 267,237
Yetagon 4,530 421 4,041 146,814 137,823 137,823
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Shwe 1,249 3,045 42,079 37,041 531 37,571
Zawtika 45 11 986 618 618
Total 9,025 3,967 4,165 8 482,276 372,690 82,929 455,619
2014-15 Onshore 214 298 - - 19,751 17,495 1,786
Yadana - 436 - - 293,307 225,238 64,743 2,946
Yetagon 625 - 136,746 127,846 4,512
Shwe 280 137,429 127,963 6,795 2,394
Zawtika 81 84,102 57,625 23,261 2,802
Total 1,200 734 - - 671,335 538,672 112,295 650,967
Source: Ministry of Electricity and Energy, 2015
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Table A.2. Total Production Statistics (mmSCF)
Production Export Domestic Total Own Vent/Flare Line Unpack Use Pack
2011-12 464,935 364,985 87,518 452,503 7,646 620 5,878 368
2012-13 467,005 362,156 81,561 443,717 7,686 2,442 7,752 29
2013-14 482,276 372,690 82,929 455,619 9,025 3,967 4,165 8
2014-15 671,335 538,672 112,295 650,967 1,200 734 - -
Source: Ministry of Electricity and Energy, 2015
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B. Coal
Figure B.1. Distribution of Coal Occurrences (Left) and Coal Basins (Right) in Myanmar
Basing (Right) in Myanmar
Source: ADB, Energy Master Plan, 2016 referring to Department of Geological Survey and Mineral Exploration of Myanmar.
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Figure B.2. Locations of Coal Reserves of Myanmar with Total Capacity over 10 Million Tons (Mt)
Source: ADB, Energy Master Plan, 2016 referring to Myanmar Ministry of Mines.
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Table B.1. Coal Reserve Estimation Myanmar, 2014
Sr. State / Occur Place of Tonnage Total No Region rence coal (Metric Ton Million) (Metric Ton) (No) reserve P1 P2 P3 P4 (Million) estimation (Positive) (Probable (Possibl (Potential) ) e) 1 Kachin 45 9 - 0.040 0.300 0.010 0.350 (Lignite) 2 Kayah 6 1 - - - 0.001 0.001 (Sub- bituminous) 3 Kayin 4 2 - - 0.060 - 0.060 (Sub- bituminous) 4 Sagaing 82 61 4.680 18.000 127.11 100.000 249.790 0 (Sub- bituminous) 3.000 2.200 0.800 6.000 (Lignite) 5 Tanintharyi 10 8 - 2.000 0.240 1.000 3.240 (Sub- bituminous) 2.000 2.000 19.000 23.000 (Lignite) 6 Bago 9 5 - - 0.010 0.001 0.011 (Lignite) 7 Magwe 90 62 - 0.678 0.800 1.400 2.878 (Sub- bituminous) 2.000 0.400 0.300 2.700 (Lignite) 8 Mandalay 24 17 - - 0.100 - 0.100 (Sub- bituminous) 9 Yakine 20 3 - - 0.010 - 0.010 (Lignite) 10 Shan 166 112 - 39.000 1.000 0.070 40.070 (South) (Sub- bituminous) 3.000 0.710 0.090 3.80 (Lignite) 11 Shan 86 63 - 7.000 0.200 4.000 11.200 (North) (Sub- bituminous) 16.700 9.000 15.570 41.270 (Lignite) 12 Shan (East) 19 14 - 119.000 3.000 0.300 122.300 (Sub- bituminous) 18.000 14.000 0.020 32.020 (Lignite) 13 Ayeyarwadd 4 1 - - 0.010 1.500 1.510 y (Sub- bituminous)
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Total 4.680 185.678 132.52 108.271 431.149 (Sub-bituminous) (Sub- bituminous) Total - 44.74 28.63 35.791 109.161 (Lignite) (Lignite)
Total 565 358 4.680 230.418 161.15 144.062 540.31 0 Source: Ministry of Mines, September 2014 Table B.2. Coal production and consumption, thousand tons
Year Product Consumption Export ion Cement Steel Briquetting Electricity FeNi Other Factory 2007 1004.68 225.24 31.02 - 466.14 - 53.70 228.58 2008 2008 - 532.39 177.02 18.61 - 244.14 - 49.53 43.09 2009 2009 - 442.67 128.30 26.55 - 206.55 - 51.27 30.00 2010 2010 - 555.79 166.23 3.30 - 290.10 - 96.16 - 2011 2011 - 732.52 237.65 - - 338.12 69.30 62.95 24.50 2012 2012 - 790.43 218.91 - - 302.59 73.15 162.08 33.70 2013 2013 - 565.21 199.09 - - 131.41 88.94 92.36 53.41 2014 2014 - 532.58 159.77 154.45 5.33 26.63 0.00 186.40 20.00 2015 Source: Ministry of Mines, September 2015.
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C. Renewable Energy Figure C.1. Annual Monthly Average Radiation Incident on Equator-Pointed Surface (kWh/m2/day)
Source: Photovoltaic Generation Myanmar, Working Paper by Heinz W. Böhnke, Renewable Energy Adviser ADB, TA-8356 MYA.
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Figure C.2. Average solar Monthly Radiation on Horizontal Surface (MJ/m2/day) (3.6 MJ/kWh)—Showing the Regional Variation of Solar Profile over the Year
Source: Photovoltaic Generation Myanmar, Working Paper by Heinz W. Böhnke, Renewable Energy Adviser ADB, TA-8356 MYA.
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Figure C.3. Location of Geothermal Sites Investigated by Myanma Oil and Gas Enterprise in 1986.
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D. Power
Coal, Gas, and Diesel-Fired Power Plants (2016)
Coal-Fired Power Plant
Installed No. of Operation Available No. Plant No. of Machines Capacity COD Machines Capacity (MW) (MW)
1 Tygit 2 120 2005 30
Gas-Fired Power Plant
Installed Present No. of Operation No Plant No of Machines Capacity COD Generation Machines (MW) (MW)
MOEE-Owned Power Plant
1 Kyung Chaung 3 54 1974 1 12
2 Myan Aung 2 35 1975 1 12
3 Ywama (CCPP) 3(GTG)+ 1(STG) 70 1980 2(GT) 26
4 Mann 2 37 1980 0 –
5 Shwe Taung 3 55 1982 1 12
6 Thahton 3 51 1975 2 26
7 Thaketa (CCPP) 3(GTG)+ 1(STG) 92 1990 2(GT) 24
8 Ahlone (CCPP) 3(GTG)+ 1(STG) 154 1995 2(GT)+1(STG) 50
9 Hlawga (CCPP) 3(GTG)+ 1(STG) 154 1996 2(GT) 40
10 Ywama (240) 2 240 2014 1 100
Subtotal 942 302
IPP-Owned Power Plant
1 Toyo Thai 2(GTG)+1(STG) 121 2013 2(GT)+1(STG) 115
2 MCP 29(GEG) 54 2013 27 48
3 Max Power 16(GEG) 50 2013 14 45
4 UPP 13(GEG) 52 2014 13 48
5 Myanmar Lighting 4(GT)+2(STG) 230 2014 4(GT), 2ST Future 120
6 Kanbauk 6(GEG) 6 2015 6(GEG) 5
7 Thaketa CIC 1 (GE) 54 2015
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Subtotal 452 381
Rental
8 APR 75(GEG) 110.6 2014 71 101
9 V-Power 32(GEG) 100 2015 31 45
10 Aggreko 92(GEG) 103 2015 87 95
Subtotal 314 241
Total Gas 1,824 924
GTG = gas turbine generator; IPP = independent power producer; MOEE = Ministry of Electricity and Energy, MW = megawatt; STG = steam turbine generator; Source: Ministry of Electricity and Energy. 2016
Hydropower Plants (2016)
Installed Storage Storage Name of Hydro Power capacity Category capacity capacity Station [MW] [Value] [Unit]
Ba Luchang No.1 28 Run of River /
Ba Luchang No.2 168 Run of River /
Ba Luchaung No.3 52 Run of River /
Kinda 56 Irrigation 1078 Mm3
Sedawgyi 25 Irrigation /
Zawgyi No1 18 Run of River /
Zawgyi No2 12 Irrigation 639
Zaung Tu 20 Storage 620 Mm3
Thapanzeik 30 Irrigation /
Mone 75 Storage 53 GWh
Yenwe 25 Storage 67 GWh
Kabaung 30 Storage 1084 Mm3
Shweli No.1 400 Run of River /
Keng Taung 54 Run of River /
Yeywa 790 Storage 322 GWh
Shwegyin 75 Storage 114 GWh
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Dapein No.1 19 Run of River /
Kun 60 Storage 205 GWh
Kyeeon Kyeewa 74 Irrigation 571 Mm3
Upper Paunglaung 140 Storage 1300 Mm3
Nancho 40 Run of River /
Lower Paunglaung 280 Storage 71 GWh
Phyuu Chaung 40 Storage 780 Mm3
Chipwi Nge 99 Storage 1.23 Mm3
Thaukyegat II 120 Storage 51 GWh
Mong Wa 60 Storage 65 Mm3
Myogyi 30 Storage 593 Mm3
Total 2,820
MW = megawatt. Note: 5 MW installed smaller RE is not included in the table. * Figure in bracket is power supply to the PRC and not included in the total. Source: Ministry of Electricity and Energy, 2016.
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E. Myanmar Energy Balance Table, 2014/15
SUPPLY & Coal Crude Oil Natural Nuclear Hydro Geotherm. Biofuels Electricity Heat Total CONSUMPTION & (ktoe) oil products Gas Solar etc. waste Production 353 801 497 13,401 3,958 1 10,069 29,080 Imports - 3,611 3,611 Exports - 20 - 241 - - - 10,819 563 11,643 Intl. marine bunkers - Intl. aviation bunkers - Stock changes - 14 - 723 - 149 - 886 TPES 333 547 3,386 - - - 2,433 3,395 1 10,069 20,163 Transfers - 3 - 3,395 - 3,395 3 Statistical differences 20 - 33 - 9 4 Electricity plants - 17 - 106 - 1,424 415 - 1,131 CHP plants - Heat plants - Blast furnaces - Gas works - Coke/pat. Fuel/BKB plants -
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Oil refineries - 555 - 30 - 585 Petrochemical plants - Liquefaction plants - 12 - 12 Other transformation - Energy industry own use - 310 - 44 - 355 Losses - 12 - 635 - - 647 TFC 317 - 3,286 - 3,131 - 623 - 1 10,069 17,427 INDUSTRY 197 - - - - 878 - 646 463 - 2,184 Iron and steel 97 10 107 Chemical & petrochemical 198 198 Non-ferrous metals 2 2 Non-metallic minerals 8 8 Transport equipment 1 1 Machinery 6 6 Mining and quarrying 84 84 Food & tobacco 36 7 43 Paper, pulp & printing 7 7 Wood & wood products 102 102
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Construction 100 415 218 733 Textile and leater 6 6 Non-specified 878 8 886 TRANSPORT - - 1,572 - - - - - 158 - 1,730 International civil aviation 54 54 Domestic aviation 91 91 Road 236 158 394 Rail 40 40 Pipeline transport - Domestic navigation - Non-specified 1,152 1,152 OTHER 120 - 1,067 - 2,253 - 2 - 1 10,069 13,512 Residential 516 16 1 641 1,174 Comm. & public services 3 1,031 35 1,069 Agriculture/forestry 285 285 Fishing - Non-specified 117 707 732 2 9,428 10,985 NON-ENERGY USE ------
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in industry/transf./energ - of which: feedstocks - in transport - in other -
Electricity and Heat Output Electr. Generated - GWh 286 ------65 4,977 8,829 14,157 Electricity plants 286 65 4,977 8,829 14,157 CHP plants - Heat generated - TJ ------CHP plants - Heat plants -
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