Two new oil refineries planned

The Ministry of Electricity and Energy announced plans for two new high-quality oil refineries to be constructed along the Myanmar-China Crude Oil Pipeline. Speaking to members of the press, permanent secretary of the ministry, U Tin Maung Oo, said the new facilities will reduce Myanmar’s dependence of foreign oil and help the country meet its growing domestic energy needs.

“Medium oil refineries will be built in Myanmar’s central region through China-Myanmar crude oil pipeline and new Integrated Refinery and Petrochemical Complex will be constructed near Yangon region under joint venture (JV) and public-private partnership (PPP) system,” Xinhua quoted Tin Maung Oo as saying. The secretary added that the government will continue to provide assistance to the more than 500 smaller oil refineries currently operating in the country, whose daily production ranges from 3000–30,000 gallons per day. The new refineries will add to Myanmar’s growing investment in its own industry sector, including the 771-kilometer Myanmar-China Oil & Gas Pipelines, a massive infrastructure project that began pumping fuel from Myanmar’s western coast to mainland China in 2017. Although China is Myanmar’s largest oil and gas partner, the government has awarded offshore exploration and extraction rights to companies in many nations.

In other oil and gas news, this week British firm Penspen announced a contract with a major (but unnamed) Myanmar oil and gas operator to provide technical support and engineering services. Neale Carter, Penspen’s Executive Vice President for the Middle East, Africa and Asia Pacific Regions, said the contract “bolsters our reputation in Myanmar, and we look forward to undertaking this work in Q2 2020.”

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