Energy
From The Report: Myanmar 2014
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The energy sector is the great, untapped potential on which much of Myanmar’s hopes are pinned. One of the world’s first oil producers, Myanmar is emerging in the 21st century as a key producer of natural gas. The country’s vast rivers are also well suited to hydroelectric dams. The lion’s share of sector investment has been aimed at the export market as low electric tariffs and an inefficient centrally planned gas distribution system limit expansion of the public energy grid. Already the main source of the country’s electric power production, hydropower output has the potential to be boosted 40 times. Myanmar faces challenges, however, with an underpowered and overloaded energy grid. Furthermore, the pace of new supply additions is unlikely to keep pace with rapidly growing domestic and international demand. Over the longer term, offshore gas exploration is set to bear substantial fruit and large hydropower projects are expected to be revived, which will ultimately accelerate industrial development.
This chapter contains interviews with U Khin Maung Soe, Union Minister, Ministry of Electric Power; U Zay Yar Aung, Minister of Energy; U Moe Myint, Chairman and CEO, MPRL E&P, and CEO, Myint & Associates; Jean-Marie Guillermou, Senior Vice-President Asia Pacific, Total Exploration & Production; and Ken Tun, CEO, Parami Energy Group of Companies.

Articles from this Chapter

Overview

Powering up: Accelerating reforms and boosting efficiency can transform the sector
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The energy sector is the great, untapped potential on which much of Myanmar’s hopes are pinned. One of the world’s first oil producers, Myanmar is emerging in the 21st century as a key producer of natural gas. With the lifting of international sanctions and the resolution of a maritime border dispute with Bangladesh, the government has moved to speed up investment by tendering out vast regions of the country and its offshore shelf to foreign investors. Drawn by the river delta geography and the…

Interview

OBG talks to U Khin Maung Soe, Union Minister, Ministry of Electric Power (MoEP)
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Interview:U Khin Maung Soe To what extent can public-private partnerships (PPPs) help to improve the nation’s power capacity over the next few years? U KHIN MAUNG SOE: Over the next few years, PPPs will play a vital role in helping to improve Myanmar’s electric power industry. The government recognises that it could not meet electricity demand growth without the assistance of the private sector. Therefore, we invited local and foreign investors to cooperate and invest in electric power…

Interview

OBG talks to U Zay Yar Aung, Minister of Energy
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Interview:U Zay Yar Aung How has the country’s oil and gas sector evolved following the easing of sanctions? U ZAY YAR AUNG: The Ministry of Energy (MoE) is mainly responsible for the petroleum sector. In Myanmar there are 53 onshore blocks and 51 offshore blocks, so altogether 104 blocks have been demarcated and now operate in exploration and production (E&P) of petroleum. Currently, Myanma Oil and Gas Enterprise (MOGE) is working in some onshore blocks, while international oil companies…

Analysis

Gaining momentum: Unlocking potential in hydroelectric power is a multifaceted challenge
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Few issues stir as much interest in Myanmar as hydroelectric power. For some, the significant number of potential dam sites are untapped opportunities to bring the country into the developed world, while for others, hydropower projects challenge the preservation of traditional cultures, ecosystems and homelands. Background In a 1995 World Bank study, Myanmar’s rivers were noted as having the potential to host 266 dams that could produce up to 108,000 megawatts (MW) of power. That compares to…

Analysis

Turning on the lights: Establishing a stable supply is crucial as the country is at the centre of plans for a regional power grid
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New projects are welcome given the country’s weak domestic grid and isolation from regional power supplies. With the exception of electricity being sold across the border to China, Myanmar is largely cut-off from its neighbours. While its main grid may lack connections to others, the country is in a very good position to begin linking up with regional power systems. The development of a cross-border electricity trade could do a lot to alleviate domestic power problems and at the same time possibly…

Analysis

Exploring opportunities: New oil and gas blocks continue to attract international companies
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Among the most important economic developments in Myanmar since political reforms began in 2010 is the new administration’s effort to accelerate oil and gas exploration. Almost the entire offshore shelf that is not already under contract is being offered by the government, setting aside only the Mergui Archipelago region, a natural preserve and green tourism destination. Rising Demand Although it will be many years before any of the blocks being offered yield oil or gas, the rise in licensing…

Interview

OBG talks to U Moe Myint, Chairman and CEO, MPRL E&P, and CEO, Myint & Associates
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Interview:U Moe Myint How has the recent withdrawal of sanctions on Myanmar affected the energy sector so far? U MOE MYINT: The change has been nothing short of significant. Although the oil and gas industry is more than 100 years old, recent bids have proven that the global oil community is interested in Myanmar and that the government has increased measures to ensure transparent bidding. What this most importantly brings to the energy sector is access to technology. Take the US, which has…

Interview

OBG talks to Jean-Marie Guillermou, Senior Vice-President Asia Pacific, Total Exploration & Production
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Interview:Jean-Marie Guillermou What impact will the entrance of new international players have on Myanmar’s oil and gas industry? JEAN-MARIE GUILLERMOU: Since 2011 Myanmar has turned a new page. There is no doubt these profound changes are essential for both the population and the economy. Reforms and the easing of international sanctions will bring about new opportunities and broaden possibilities for international players to contribute to social and economic development. The historical…

Analysis

Light of day: Solar could be a handy alternative while larger projects get under way
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With an abundance of resources, especially coal, oil, natural gas, hydro and geothermal, solar is not an obvious choice for Myanmar. Solar power, however, is an excellent source of energy for the country and could help it meet some of its more pressing energy needs in the near and mid-term. Solar may also have a role to play in Myanmar’s long-term energy future, even as other sources ramp up and as the grid is improved. Power Like much of South-east Asia, Myanmar gets a good amount of sunlight.…

Interview

OBG talks to Ken Tun, CEO, Parami Energy Group of Companies
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Interview:Ken Tun How important is Myanmar's oil and gas industry to the overall development of the economy? KEN TUN: The oil and gas industry is a crucial one for Myanmar. The oldest continuously-producing field in the world, Yenangyaung in central Myanmar, has been in operation since 1887. The sector will be important in many ways. We expect rapid expansion in the number of vehicles as a result of speedy economic growth, and these vehicles will be relying entirely on fossil fuels. Daily…