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energy.fronermyanmar.com Myanmar Energy Brief Issue 86 23 February 2017 Part of the Myanmar Energy Monitor energy.fronermyanmar.com IN THIS ISSUE Karpowership project reportedly suspended due to cost The Ministry of Planning and Finance is said to have balked at the high price for power from the fast-track project Permanent LPG licenses handed out by MPE Government aims to beer regulate LPG market, replacing temporary licences with permanent licences in most states and regions Analysis: Thailand-bound exports from Zawka surpassing Yetagun A connued decline in producon at Yetagun means Thailand is now consistently receiving more natural gas from Zawka Malaysian conglomerate looks for Myanmar CCGT deals Woodside rig to arrive at Myanmar site this week Analysis: Fuel price climbing again aſter steady January Fast-track project may not launch unl 2018 MCLs coal plant sparks Mon State protest Fuel storage tanks planned for Shwe Pyi Thar township MPE pledges to prevent rapid price swings from own producon Malaysias Gastec looks to Myanmar Mandalay electricity minister points to necessary capacity expansion Parliamentarians push for changes to arsanal oil well bill Some 600 more applicaons for fuel staons Indian oil minister visits looking for opportunies Korean cable-makers announce Myanmar joint venture THIS WEEKS NEW TENDERS Construcon of power line in Ayeyarwady Region Delivery of items from Mawlamyine to Yangon Supply of petroleum items to MOGE Joint venture for diesel generator facility Three-storey building at Ahlone Power Staon THIS WEEKS NEW DATA Weekly fuel retail and import prices, February 2017 Fuel retail prices by city, February 2017 CALENDAR MiTA Myanmar Energy and Environment Exhibions & Conference NEWS ANALYSIS DATA TENDERS COMPANIES energy.fronermyanmar.com ENERGY NUMBER OF THE WEEK $0.11 per kWh The 300MW Karpowership project was reported to have a cost of power of about $0.11 per kWh in November, though a final amount was not agreed to. However, this price appears to have been too high, with the Ministry of Planning and Finance reportedly suspending the project due to concerns over funds. An official statement has not been released regarding the fate of the scheme.

Myanmar Energy rief NEWS · according to a report in Pyi Myanmar Weekly journal. Rumours have swirled that there were difficulties finalising agreements, particularly on tariff prices

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Page 1: Myanmar Energy rief NEWS · according to a report in Pyi Myanmar Weekly journal. Rumours have swirled that there were difficulties finalising agreements, particularly on tariff prices

energy.frontiermyanmar.com

Myanmar Energy Brief Issue 86 23 February 2017

Part of the Myanmar Energy Monitor energy.frontiermyanmar.com

IN THIS ISSUE

Karpowership project reportedly suspended due to cost

The Ministry of Planning and Finance is said to have balked at the high price for power from the fast-track project

Permanent LPG licenses handed out by MPE Government aims to better regulate LPG market, replacing temporary licences with permanent licences in most states and regions

Analysis: Thailand-bound exports from Zawtika surpassing Yetagun A continued decline in production at Yetagun means Thailand is now

consistently receiving more natural gas from Zawtika

Malaysian conglomerate looks for Myanmar CCGT deals

Woodside rig to arrive at Myanmar site this week

Analysis: Fuel price climbing again after steady January

Fast-track project may not launch until 2018

MCL’s coal plant sparks Mon State protest

Fuel storage tanks planned for Shwe Pyi Thar township

MPE pledges to prevent rapid price swings from own production

Malaysia’s Gastec looks to Myanmar

Mandalay electricity minister points to necessary capacity expansion

Parliamentarians push for changes to artisanal oil well bill

Some 600 more applications for fuel stations Indian oil minister visits looking for opportunities

Korean cable-makers announce Myanmar joint venture

THIS WEEK’S NEW TENDERS

Construction of power line in Ayeyarwady Region

Delivery of items from Mawlamyine to Yangon Supply of petroleum items to MOGE

Joint venture for diesel generator facility Three-storey building at Ahlone Power Station

THIS WEEK’S NEW DATA

Weekly fuel retail and import prices, February 2017

Fuel retail prices by city, February 2017

CALENDAR

MiTA Myanmar Energy and Environment Exhibitions & Conference

NEWS ANALYSIS DATA TENDERS COMPANIES

energy.frontiermyanmar.com

ENERGY NUMBER OF THE WEEK

$0.11 per kWh

The 300MW

Karpowership project was reported to have a cost of power of about $0.11 per

kWh in November, though a final amount

was not agreed to.

However, this price appears to have been too high, with the Ministry of

Planning and Finance reportedly suspending

the project due to concerns over funds.

An official statement has

not been released regarding the fate of the

scheme.

Page 2: Myanmar Energy rief NEWS · according to a report in Pyi Myanmar Weekly journal. Rumours have swirled that there were difficulties finalising agreements, particularly on tariff prices

energy.frontiermyanmar.com

Power and electricity Karpowership project reportedly suspend due to cost The Ministry of Electricity and Energy has decided not to move forward with the 300MW Karpowership project after a recommendation from the Ministry of Planning and Finance, according to a report in Pyi Myanmar Weekly journal. Rumours have swirled that there were difficulties finalising agreements, particularly on tariff prices between Karpower management and the Myanmar government. The article quoted Ministry of Electricity and Energy official U Khin Maung Win as claiming the Ministry of Planning and Finance had felt the project was unsuitable. Currently the project is frozen, and cannot proceed as-is due to the finance ministry’s complaints, the article said. However, insiders connected with the company told Myanmar Energy Monitor on 21 February that as far as they knew, the project has not been officially cancelled, and indeed no official statement has been released by Karpower. Of note, the article in Pyi Myanmar from 21 February (but dated 23 February) is so far the only reporting that claims the project is not moving forward, and it appears to cite only one source, leaving open the possibility it is not accurate. Karpower was one of two finalists last year for a fast-track 300MW project designed to be implemented in Yangon ahead of the next hot season in April. While it ultimately lost to a consortium led by APR Energy, officials later said they would also move ahead with Karpower.

The ship, called the Onur Sultan, was officially launched from Istanbul in November 2016 in the presence of dignitaries including the President of Turkey. It was destined to arrive in Yangon before April, and was reportedly to dock at Thanlyin township for five years while generating electricity. The article claimed that the tariff would have reached $100 per MW (likely meaning $0.10 per kWh), which would be too high. Reporting from November had indicated the price would be around $0.11 per kWh. An agreement was to be signed in December 2016, though this appears to have not yet come to pass. U Khin Maung Win said that company has been waiting patiently, and understood a contract would only happen if Myanmar could guarantee it had sufficient money. “Now the country’s finances are showing a deficit, the finance ministry can’t issue the required budget,” he said. He added concerns that Yangon will again face the problem of insufficient power for the summer months, when hydropower declines, and that power shortages will be likely.

Myanmar Energy Brief | 17 February - 23 February 2017 2

Page 3: Myanmar Energy rief NEWS · according to a report in Pyi Myanmar Weekly journal. Rumours have swirled that there were difficulties finalising agreements, particularly on tariff prices

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Government and local authorities Permanent LPG licenses handed out by MPE Myanma Petrochemical Enterprise (MPE) is handing out permanent D licences for retail operations and permanent E licences for storage and distribution of LPG for apartments and shops, according to an article in Myanma Ahlin. The licences have been handed out since January by MPE, which is under the Ministry of Electricity and Energy. So far, 68 separate D licences and 435 E licences have been handed out in all of Myanmar’s states and regions, except for Kayah, Chin, Rakhine and Kachin States. These areas are to be investigated later. The move to issue permanent licences was first announced in June 2016, when the government announced trial licences which could later be switched to permanent licences provided the temporary licence holders followed the rules. The initiative was announced as part of the new National League for Democracy’s 100 day plan. Officials at the time announced site inspections would be complete by December, to allow the permanent licences to be issued. However, the work to formalise the LPG distribution and retail market predates the NLD, and media has reported efforts began in January 2016. Myanmar has five types of LPG licences, according to past media reports. A and B class licences are issued to firms that import LPG and own storage facilities.

C licences are wholesale distributors to retail outlets, while D licences are for retail operations and E licences are for storage and distribution on a local level. Production and exports Analysis: Thailand-bound exports from Zawtika surpass Yetagun for first time Zawtika exported more natural gas to Thailand over the final quarter of 2016 than did Yetagun, the first time this has consistently happened since Zawtika began commercial production in 2014. While Yetagun averaged 218mmcfd of gas exports to Thailand in 2016 and Zawtika averaged 217mmcfd, the difference grew pronounced at the end of the year as Zawtika pulled ahead. Yetagun exported 207mmcfd on average in Q4 2016, compared with 231mmcfd for Zawtika. The decline in Yetagun exports to Thailand have been a long time coming, with the offshore area’s production waning for several years. Zawtika meanwhile began production in 2014. Its operator PTTEP said earlier this month its sales averaged about 305mmcfd in 2016, with the difference likely earmarked for Myanmar. PTTEP is also in the construction phase for four production platforms at Phase 1C to support production plateau, after production started at the fourth platform in Phase 1B in April 2016. Petronas Cargali is the operator of the Yetagun offshore area. Yadana is Thailand's largest source of Myanmar exports and is operated by Total, while Posco Daewoo-operated Shwe Gas exports mainly to China.

Myanmar Energy Brief | 17 February - 23 February 2017 3

Page 4: Myanmar Energy rief NEWS · according to a report in Pyi Myanmar Weekly journal. Rumours have swirled that there were difficulties finalising agreements, particularly on tariff prices

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B2B Malaysian conglomerate looks for Myanmar CCGT deals Malaysian conglomerate Ranhill Holdings is looking at Myanmar as part of its efforts to generate more revenue from regional power plants. While the firm is looking at Myanmar, Thailand and Cambodia, it is particularly keen on combined-cycle gas turbines for Myanmar and Cambodia, said its power division chief executive Zahrul Faizi Hussien, according to an 18 February article in Malaysia’s The Star. The firm would expect to participate as part of a consortium and would be able to allocated between 100m and 150m ringgit ($22m and $34m) according to the article. Hussien added that any project would be announced when the time comes, and the company is still looking at opportunities. The firm’s power business currently generates about 30% of its overall revenue from Southeast Asia, though it would like to grow this to 50%. Exploration Woodside rig to arrive at Myanmar site this week The Dhriubhai Deepwater KG2 drillship contracted by Woodside from Transocean for 2017 drilling is expected to arrive on-site offshore Myanmar this week, company officials said during its 2016 annual conference call. Spudding is expected to begin later this month, with a minimum of two appraisal and two exploration wells planned for this year, with scope for an additional three wells. The appraisal wells include coring and well testing to quantify static and dynamic reservoir performance.

For the exploration wells, there will be one each in A-6 and AD-7. The program is aimed at improving the firm’s understanding of the resource base and assisting in identifying a path to commerciality. The firm announced two offshore discoveries at Myanmar blocks in 2016, claiming their contain 2.4Tcf of recoverable gas. Woodside turned a profit of $868m in 2016. Its 2016 priorities include Wheatstone and Pluto LNG facilities in Australia and Senegal, as well as Myanmar. Earlier this year, the company said it planned to spend $100m on Myanmar exploration this year, making up a significant portion of its exploration budget.

Transportation and distribution Analysis: Fuel price climbing again after steady January Local fuel prices are beginning to rise again this month, after staying steady during January. While some media reports say that prices are up by as much as Ks100 a gallon, though data from the Myanmar Petroleum Traders Association shows the increase is closer to Ks10 per litre for diesel and Ks20 per litre for Octane 92.

Myanmar Energy Brief | 17 February - 23 February 2017 4

Page 5: Myanmar Energy rief NEWS · according to a report in Pyi Myanmar Weekly journal. Rumours have swirled that there were difficulties finalising agreements, particularly on tariff prices

energy.frontiermyanmar.com

Media reports have blamed volatility in the dollar-kyat exchange rate for the increase. 7 Day Daily quoted a Max Energy retail manager as stating that volatility in the exchange rate caused the February price hike, adding that prices are unlikely to come down as summer (and higher demand) is around the corner. The kyat traded at Ks1,365 per US dollar on 22 February, the weakest rate it has traded at so far this calendar year. Rates had been trending weaker since hitting Ks1,317 in early January. International oil prices have been relatively steady so far in 2017, with WTI between $52 and $54 a barrel. Prices climbed considerably at the end of 2016. Retail prices, January

Retail prices, February

Power and electricity Fast-track project may not launch until 2018 The fast-track project to be built by a consortium including APR Energy may not launch until early 2018, according to an unconfirmed local media report. The consortium was chosen as the winner of a fast-track project in 2016, with the aim of it becoming operational by April 2017, ahead of the hot season. A report by Democracy Today released on 22 February said that officials from MCM Pacific, which is one of the consortium members, met with residents of Dala township on 21 February, and indicated the project might not be operational until 2018. The project is to be located in Seikkyi Kanaungto township, between the Twante canal and the Hlaing river, the article claimed. The companies involved include the following: National Infrastructure Holding MCM Pacific Pte APR Energy Ace Resources Group MCM Pacific official U Aung Tun Myint said in the article that the permit for the project has already been approved, but a power purchase agreement has not yet been signed. The article said that negotiations on the PPA are ongoing, with construction able to begin 90 days after signing the power purchase agreement. However, it should be noted that so far only Democracy Today appears to have reported this information, leaving open the possibility that the report is incorrect. Companies in the consortium have not yet replied to requests for confirmation by Myanmar Energy Monitor on this information.

Myanmar Energy Brief | 17 February - 23 February 2017 5

Page 6: Myanmar Energy rief NEWS · according to a report in Pyi Myanmar Weekly journal. Rumours have swirled that there were difficulties finalising agreements, particularly on tariff prices

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While the consortium won the fast-track tender last year, officials initially said they would move forward with it as well as the project proposed by the second-place finisher, Karpowership. This week, press reports have also indicated that the 300MW Karpowership project has been suspended due to budgetary pressures. Communities MCL’s coal plant sparks Mon State protest About one thousand villagers showed up to protest the Mawlamyine Cement Limited (MCL) factory’s use of coal power, according to a 19 February article in The Voice. The protestors reportedly came from about 10 villages in Kyaikmaraw township, Mon State, which is near the factory. They protest took place on 18 February. The MCL factory is majority-owned by Thailand’s Siam Cement Group with minority partners Pacific Link Group. Local people have alleged the facility is to be powered by coal, and has been operating since 2016. Work on the factory began in 2013, with claimed investment of $400m. The article quoted local villagers as claiming that they would not accept coal power, and that the facility ought to use another sort of generation such as natural gas. Protestors claim to have sent two letters to relevant government departments protesting coal, as well as hanging public notices. Protestors have also carried signs with declarations such as ‘No Coal’, ‘Preserve Our Heritage’, and ‘Protect Water Resources’.

It appears that while the project received Myanmar Investment Commission (MIC) approval, project backers have not received specific union-level approval to be powered by coal. Mon State parliamentarian Dr Aung Naing Oo said that the government has received the complaints and conducted a site visit. He added that as far as the Mon State government knows, the union government has not issued a specific permit for electric power operations by the factory.

MCL has responded that its coal power-plant was part of its initial design submitted to the Myanmar Investment Commission, and commission approval has been received. In addition, the firm claims to be using the latest Japanese technology to allow for green power. The article quoted MCL executive U Zaw Lwin Oo as stating the factory aims to have a low environmental impact, as well as inviting local people to “visit the factory”. Coal power has been a difficult subject recently, with the National League for Democracy government in Naypyitaw having taken a position against the fuel source, but with more nuanced positions held by various local authorities.

Myanmar Energy Brief | 17 February - 23 February 2017 6

Page 7: Myanmar Energy rief NEWS · according to a report in Pyi Myanmar Weekly journal. Rumours have swirled that there were difficulties finalising agreements, particularly on tariff prices

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Last week, natural resources minister U Ohn Win said that no more coal mining licences will be given out. Different media quoted his other remarks in different ways, but it also sounded as though the government may have committed to not allowing more coal generation. Certainly, the large coal-fired plants for which MoUs were signed under the previous government have not moved forward under the NLD. Transportation and distribution Fuel storage tanks planned for Shwe Pyi Thar Township A number of onshore fuel storage tanks are planned for Shwe Pyi Thar township, Yangon Region, according to the Myanmar Petroleum Trade Association as quoted in local media. Currently Yangon’s fuel storage facilities for imported products are at Thilawa Port in Thanlyin township. However, the article in Democracy Today said authorities are looking at a location that would be better for distribution to Ayeyarwady and Bago Regions. Three locations in Shwe Pyi Thar township – to the northwest of Yangon along the Hlaing river – have been shortlisted for the site, according to association secretary official Dr Win Myint. Once a single site is chosen, the recommendations will be submitted to the Region chief minister, which will then proceed. The article said that rather than a single person being responsible for the installation, it is better if responsibility is shared among several people, to gain more popular support. The association has also been managing fuel storage in Mandalay Region.

Transportation and distribution MPE pledges to prevent rapid price swings from own production The Myanma Petrochemical Enterprise (MPE) has attempted to refute claims it profiteers through unexpected large increases in the price of its products, through an article released by military-owned Myawaddy Journal on 21 February. MPE director U Aung Min said that while prices vary by month depending on market conditions, it does attempt to smooth over increases from month-to-month. The article stated that during February, diesel and CGO produced at the Mann Thanpayarkan petrochemical facility sold at Ks2,500 and Ks2,000 per gallon respectively, and blue oil produced from Chauk facility is sold at Ks1,700 per gallon. MPE is Myanmar’s state-owned downstream producer. It claims to currently have about 8m gallons of CGO and about 6m gallons of petrol that have largely sold out. The newspaper article also said that outside market conditions sometimes cause large increases in prices. There have been large-scale public complaints in the past over fuel prices. The Union Solidarity and Development Party faced frequent criticisms that local prices came down much more slowly than international prices during periods of declines. While the National League for Democracy government has faced fewer criticisms since taking office in 2016 on fuel prices, this may change if there are rapid swings in prices.

Myanmar Energy Brief | 17 February - 23 February 2017 7

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B2B Malaysia’s Gastec looks to Myanmar Malaysian firm Gas Generations (Gastec) is looking to Myanmar for continued expansion, according to a 20 February article in Malaysia’s The Star Online. The firm is looking at power plant projects as well as oil and gas in Myanmar, according to its chief executive Ken Tan. Another target is Vietnam. Gastec primarily works in designing, engineering and commissioning industrial gas packages and on-site production plants for nitrogen, hydrogen, oxygen, for air / gas compression, filtration and other processes. Its customers are businesses such as oil and gas, power, food, palm oil and electronics, according to the article. The firm is a subsidiary of Malaysian conglomerate T7 Global. Currently, Gastec generates about 60 to 65% of its revenue from outside Malaysia. Gastec is far from the only Myanmar company interested in energy in Myanmar. Earlier this week, Malaysian conglomerate Ranhill Holdings said it is looking at Myanmar as part of its efforts to generate more revenue from regional power generation. While the firm is looking at Myanmar, Thailand and Cambodia, it is particularly keen on combined-cycle gas turbines for Myanmar and Cambodia, said its power division chief executive Zahrul Faizi Hussien.

Power and electricity Mandalay electricity minister points to necessary capacity expansion Mandalay Region expects it will need installed capacity of at least 450MW to provide sufficient power in summer months, Mandalay Region Ministry of Construction, Electricity and Energy U Zarni Aung was quoted as saying in The Voice Daily. U Zarni Aung said that basic electricity requirements of Mandalay, particularly from Mandalay city, have been increasing rapidly. In 2014-15, capacity of 200MW was enough, though requirements have grown to 300MW in 2015-16, 350MW in 2017, and later to at least 450MW. It is unclear on what basis the government calculated these figures. There are a few power projects in the region, including the Sedawgyi and Lawpita dams, and officials have said they are keen to add more capacity. Plans are also underway for solar power in the region. Legislation Parliamentarians push for changes in artisanal oil well bill Members of parliament have criticised a draft bill on artisanal oil workers, claiming it will adversely affect livelihoods of workers and small-scale operators, according to an article in the Global New Light of Myanmar on 23 February. Magwe Region MP U Kyaw Swe said that one part of the bill shortens the depth for artisanal drilling to 1,200ft from 1,800ft at present, which is too shallow a depth.

Myanmar Energy Brief | 17 February - 23 February 2017 8

Page 9: Myanmar Energy rief NEWS · according to a report in Pyi Myanmar Weekly journal. Rumours have swirled that there were difficulties finalising agreements, particularly on tariff prices

energy.frontiermyanmar.com

He said crude in Myaing and Pauk townships generally requires drilling to between 1,800ft to 2,000ft. The rules will cause job losses, tax losses, corruption, and hinder the development of private business, he reportedly said.

U Kyaw Swe said a better approach would be to provide technical assistance to artisanal oil drillers so people can operate under the law. He also suggested increasing the allowed depth to 2,000ft. Another Magwe Region MP Dr Kyaw Ngwe also said a depth of 1,500ft to 2,000ft would be appropriate. Artisanal oil extraction is strongest in Magwe Region, though there are also operations in Sagaing, Ayeyarwady and Yangon Regions. In September 2016, government officials said that tightened rules are planned for oil drillers, with a goal of issuing licences so that people can work without causing environmental damage and without starting fires, as well as developing the areas where the work is taking place. Parliament had previously discussed a draft law covering artisanal oil wells in 2015. It is unclear from the articles if the current discussions are on the same law, or on a new law.

Transportation and distribution Some 600 more applications for fuel stations on top of 2,000 existing shops Over 600 fuel stations have applied for permission to open, representing a significant increase on the roughly 2,000 fuel stations currently operating, according to a 23 February article in 7Day Daily. There were reportedly 2,065 privately-owned fuel retail stations licensed by the government as of 22 February, an increase of over 100 since September 2016, when there were 1,947 stations. The Myanma Petroleum Products Enterprise (MPPE) has been working to improve licensing for applicants, particularly in the states and regions outside Yangon. While the number of stations is increasing rapidly, there are still not enough to meet local demand and more are encouraged to apply to open, according to the article, which quoted an official from MPPE. Mandalay has about one-quarter of Myanmar’s licensed fuel stations, followed by Shan State at 331 stations at present. The number of stations in Yangon has been strictly controlled by government as well as expensive land prices, meaning there are only 151 stations in Myanmar’s most affluent Region. The Myanmar government formerly controlled the retail market through state-owned firms, though largely left the business in 2011. At the time, there were only 261 retailers in the country, a figured which has now grown significantly. MPPE held on to 12 stations during privatisation. The government has announced plans to form a joint venture with a private company to operate the stations.

Myanmar Energy Brief | 17 February - 23 February 2017 9

Page 10: Myanmar Energy rief NEWS · according to a report in Pyi Myanmar Weekly journal. Rumours have swirled that there were difficulties finalising agreements, particularly on tariff prices

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In 2016, a short-list of Indonesia’s Pertamina, Singapore’s Puma Energy and Indian Oil Company was revealed. However, no formal decision has yet been announced on which company would be the winner. Government and local authorities Indian oil minister visits looking for opportunities Indian oil minister Dharmendra Pradhan undertook a trip to Myanmar this week, looking for opportunities in oil exploration, refining and product retailing, according to a press release. The country’s majors are keen to participate in another offshore bidding round when it takes place, with Indian firms ONGC Videsh and GAIL already holding stakes in the Shwe Gas offshore area, while ONGC Videsh and Oil India has exploratory blocks in Myanmar as well. The minister also suggested Indian participation in Myanmar’s mid- and down-stream businesses, giving the following examples: Refurbishment and upgrade of Myanmar

refineries Developing downstream market through

supply of petroleum products LPG Wax Petrochemicals

As well, the minister discussed integrating the Indian Natural Grid with Myanmar, including sourcing LNG. India has focused on Myanmar as a priority country with its Act East policy. India also sees Myanmar as a conduit to travel to the country’s landlocked northeast, to which roads are frequently disrupted. There have been periodic talks about strengthening energy ties between the two countries, with relatively few results. For instance, India is thought to have made an effort to be the main purchaser of Shwe Gas when it first came online, though China ended up becoming the main buyer. Pradhan met with Myanmar’s energy minister U Pe Zin Tun during his recent trip, as well as visiting the Shwe Gas area, where ONG Videsh and GAIL both have stakes. He also expressed proposals to support Myanmar with training and capacity building for hydrocarbon officials. Last year, Reuters reported that ONGC Videsh was in early talks with Russia’s Gazprom for a complicated deal which would see Myanmar’s Shwe Gas area re-oriented from China to India, with China’s loss made up by Russia. An article by Reuters this week said that Indian businesspeople are keen to trade in products with Myanmar. Numaligarh refinery managing director Padmanabhan said that the firm is looking to sell gas oil to northwest Myanmar, initially starting with small amounts. Indian Oil Corp chairman B Ashok has also said his firm is looking for downstream opportunities and sale of refined fuels, while Hindustan Petroleum advertised in November for a local distributor for its products.

Myanmar Energy Brief | 17 February - 23 February 2017 10

Page 11: Myanmar Energy rief NEWS · according to a report in Pyi Myanmar Weekly journal. Rumours have swirled that there were difficulties finalising agreements, particularly on tariff prices

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B2B Korean cable-makers announce Myanmar joint venture A subsidiary of Korean firm LS Cable has announced it will acquire 50% of electric cable maker LS-Gaon Cable Myanmar, after already holding 9.1% of the firm, according to Korean media. Further details on the deal are unclear, but it is thought LS-Gaon is a newly-established joint venture with another Korea electric cable-maker called Gaon. It is unknown if there is local participation. This is not LS Cable’s first foray into Myanmar. In 2015, it announced it had won a $13m deal from what was then the Ministry of Electric Power to supply high-voltage cables. LS Cable & System also held a press conference in August 2016, where company officials announced plans to make the firm’s Asia subsidiary into the largest cable-maker in Southeast Asia. It already has a large presence in Vietnam. The firm also announced plans to list its Vietnam-based subsidiary on the stock market to obtain more funds for the expansion, though it is unclear if this has taken place.

Myanmar Energy Brief | 17 February - 23 February 2017 11

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Organisation Description Deadline Contact

Electricity Supply Enterprise (ESE)

The Electricity Supply Enterprise (ESE) in Ayeyarwady Region under Ministry of Electricity and Energy invites companies to submit bids for

the current 2016-17 fiscal year.

The project is for construction of 11KV power lines (8 miles long) in the area of Dauntkyee Village, Parami Daunt District, Einme Township,

Ayeyarwady Region

3/3/2017

Electric engineering office of Ayeyarwady region, Einme

Township within office hours.

Contact: +95 42 21981 /

+95 42 21984

Yangon Electricity Supply Corporation (YESC)

The Yangon Electricity Supply Corporation (YESC) under the Ministry of Electricity and Energy invites interested companies to deliver the

following items from Mawlamyine to Ahlone township, Yangon.

Tender No. 24(T)/YESC/16-17

Description Frame-6B T/R 315/11KV 54.3 MVA (1)No

Steam Turbine T/R 40 MVA (1) No

CM 2500 Transformer 31.5 MVA (1) No

Auxilary Transformer 31.5/0.4 KV, 1600 KVA (3)No

27/2/2017

Planning Department of Yangon Electricity Supply Corporation,

Yangon.

Contact: 01-220816

NEW TENDERS

Myanmar Energy Brief | 17 February - 23 February 2017 12

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Organisation Description Deadline Contact

Myanmar Oil and Gas Enterprise (MOGE)

The Myanmar Oil and Gas Enterprise (MOGE) under Ministry of Electricity and Energy invites companies to submit bids to supply the following

petroleum items (in both US dollars and Myanmar kyats).

Tender application forms must be submitted in person, not later than

16:00Hrs on 20 March 2017.

20/3/2017

Planning Department, Myanma Oil and Gas Enterprise, Ministry of Electricity and Energy, Office

(44), Naypyitaw.

Contact: +95 67 411206, +95 67

411274

NEW TENDERS

Myanmar Energy Brief | 17 February - 23 February 2017 13

Tender N0. Description

Re-

marks

IFB-100(16-

17) Telecommunication Equipments (2) Items US$

IFB-101(16-

17)

Marine VHF FM Transceiver (Synthesized) (25W) (10)

Sets US$

IFB-102(16-

17) Hydraulic Jack 100 Ton (1) Set US$

IFB-103(16-

17)

Air Compressor Engine Driven with Skid 100 CFM, 150

PSI, (40-60) HP (1) Set US$

IFB-104(16-

17) 185 KW, 3300V Induction Motor (1) No US$

IFB-105(16-

17) 7 Ton Fork Lift (82.4 KW @2000 rpm) (1) Unit US$

IFB-106(16-

17) Excavator(25)Ton(Bucket Capacity-1.2m3 (1)Unit US$

IFB-107(16-

17) 4"ERW Steel Line Pipe, API 5L Grade X-42 (16.75)Miles US$

IFB-108(16-

17) 10" ERW Steel Line Pipe, API 5L Grade X-42 (10) Miles US$

IFB-109(16-

17) 4" Steel Ball valve (1) Item US$

IFB-110(16-

17) Assorted Sizes of Pipe Fittings (5) Items US$

IFB-111(16-

17) Welding Electrode E-6011(5)Ton US$

IFB-112(16-

17) Heat Shrinkable Sleeves and Closure Patches (3) Items US$

IFB-113(16-

17)

Data Acquisition, Interpretation Work Station and Data

Processing Center (10) Items US$

IFB-114(16-

17)

Spares Parts and Maintenance for PLC (Daw Nyein) (1)

Lot US$

IFB-115(16-

17) Spares Parts and Maintenance for GDS (Ywama) (1) Lot US$

IFB-116(16-

17) Spersene (100) MT US$

IFB-117(16-

17) Chrome Lignite (XP-20) (200) MT US$

IFB-118(16-

17) Spares for Oxygen Plant (12) Items US$

DMP/L-031

(16-17)

Portable Fire Pump 200 GPM, Single Stage with Engine

& Assembly (1) Item Ks

DMP/L-032

(16-17) 18R 22.5 x 18PR Tyre Tubeless (1) Lot Ks

DMP/L-033

(16-17) SAE 15W 40 Diesel Engine Oil (1) Lot Ks

DMP/L-034

(16-17) Gear Oil (PGO-140 P) (GL-5) (1) Lot Ks

Page 14: Myanmar Energy rief NEWS · according to a report in Pyi Myanmar Weekly journal. Rumours have swirled that there were difficulties finalising agreements, particularly on tariff prices

energy.frontiermyanmar.com

Organisation Description Deadline Contact

Industry Minister

Number 1 heavy industry

Industry Minister number 1 Heavy Industry business supervises number 14 factory (“tha-ga-ya”) (making all sorts of diesel engines). It invites

joint venture proposals from local and international investors.

Local and international investors that are interested can report with their plans to Number 1 Heavy Industry, Office Number 20, Naypiytaw.

The deadline is 3pm on 28 February 2017.

Interested investing companies can submit the following details from the company to the before-mentioned address beginning on 1 February

2017.

Company reference

Time period of company existence

Company’s rules and regulations

Technical performance for foreign companies (not necessary for local

companies)

28/2/2017 For details call – 067 405 159, -

067 405 322

Ministry of Electrici-ty and Energy (MoEE)

The Ministry of Electricity and Energy (MoEE) under the Yangon Region government invites companies to submit bids to construct a three storey

building within Ahlone Power Station.

The tender is for an EPC contract with total floor area 13,752 sq ft, and

will function as the Yangon Power Control New Building.

Bids must be submitted in Myanmar Kyats only.

Tender Start Selling Date will be 21 February 2017 at 9:30hrs.

Tender Closing Date will be 27 February 2017 at 16:30hrs.

Interested parties must be able to submit their technical and financial proposals including concerned company profiles not later than 16:30hrs

on 17 March 2017.

27/2/2017

Tender Evaluation and

Administration Committee, Yangon regional government office, Hluttaw Compound, Ahlone Township, Yangon within

business hours.

NEW TENDERS

Myanmar Energy Brief | 17 February - 23 February 2017 14

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energy.frontiermyanmar.com

Organisation Description Deadline Contact

Department of Electric Power

Transmission and System Control (DEPTSC)

The Department of Electric Power Transmission and System Control (DEPTSC) under Ministry of Electricity and Energy invites companies to submit bids to implement OPGW Joint Box installment project which is

required in the 230KV Taungdwingyi – Shwedaung power line and 230KV Mann – Ann power line and 230KV Baluchaung (2) – Shwemyoe power

line respectively.

Bids should be submitted in Myanmar Kyats only.

Tender Start Selling Date is 14 February 2017.

Tender must be submitted not later than 12:00Hrs at noon on 15 March

2017.

15/3/2017

Ministry of Electricity and Energy, Tender Calling Committee, Department of Electric Power

Transmission and System Control, Planning Department, Office (27),

Naypyitaw.

Contact: +95 67 410209, +95 67

410282

Electricity Supply Enterprise (ESE)

The Electricity Supply Enterprise (ESE) under the Ministry of Electricity

and Energy (MoEE) invites companies to submit bids to supply for the construction projects for power lines and substations within Tanintharyi

region with its funded cash.

Tender start selling date will be 16th February 2017.

Tender closing date will be at 4pm on 26th February 2017.

26/2/2017

Tender Calling Department, Electricity Supply Enterprise of Tanintharyi region, Dawei

Township.

Contact: +95 59 23495, +95 9

425282772, +95 9 251001690

OPEN TENDERS

Myanmar Energy Brief | 17 February - 23 February 2017 15

Page 16: Myanmar Energy rief NEWS · according to a report in Pyi Myanmar Weekly journal. Rumours have swirled that there were difficulties finalising agreements, particularly on tariff prices

energy.frontiermyanmar.com

Organisation Description Deadline Contact

Myanma Oil and Gas Enterprise

(MOGE)

The Myanma Oil and Gas Enterprise (MOGE) under Ministry of Electricity and Energy (MoEE) invites interested parties to submit bids to supply the

following petroleum items in USD and Myanmar kyats respectively.

13/3/2017

Tender applicatation forms must be submitted in person to the Planning Department, Myanma Oil and Gas Enterprise, Office (44), Naypyitaw, not later than

16:00Hrs on 13 March 2017.

Ministry of Electricity and Energy, Myanma Oil and Gas Enterprise,

Office (44), Naypyitaw, Myanmar.

Contact: +95 67 411206,

+95 67 411274

OPEN TENDER

Myanmar Energy Brief | 17 February - 23 February 2017 16

Tender N0. Description

Re-

marks

IFB-082(16-17) ZP375 Rotary Table (1) No US$

IFB-083(16-17) Travelling Block with Hook (2) Items US$

IFB-084(16-17) Rotary Swivel (2) Items US$

IFB-085(16-17)

Skid Mounted Water Transfer Pump with Engine

and Accessories (6)Sets US$

IFB-086(16-17)

Transformer Welding Set, 400 AMP with Acces-

sories (4)Sets US$

IFB-087(16-17)

Welding Machine (Portable) with 14 HP Engine

and Accessories (4) Sets US$

IFB-088(16-17) 50 Ton Hydraulic Mobile Crane (1) Unit US$

IFB-089(16-17) Fuel Bowser (2800 Gal Capacity) (1) Unit US$

IFB-090(16-17)

Skid Mounted Crude transfer Pump with Engine

(100GPM x 300PSI) (2) Sets US$

IFB-091(16-17)

Skid Mounted Water Transfer Pump with Engine

(100 GPM x 300 PSI) (2) Sets US$

IFB-092(16-17)

Air Compressor Engine Driven Skid with Air

Dryer (80-120 HP) (1) Set US$

IFB-093(16-17)

CNG Compressor Driven Electric Motor with

Complete Package (1) Lot US$

IFB-094(16-17) 2900 Series Well Head Equipment (1) Set US$

IFB-095(16-17) 900 Series Well Head Equipment (1) Set US$

IFB-096(16-17) 600 series Well Hand Equipment (3) Sets US$

IFB-097(16-17)

Pumping Unit (160D-173-74) Max Length 74

Inches (1) No US$

IFB-098(16-17)_

Pumping Unit (114D-119-96) Max Length 74

Inches (1) No US$

IFB-099(16-17) Gas Compressor (1) No US$

DMP/L-024(16-

17) A3 Digital Multifunction Copier (1) Item Ks

DMP/L-025(16-

17)

Binocular Microscope with Lighting Equipments

(1) Item Ks

DMP/L-026(16-

17)

Space Aerial Cable (SAC) 95mm2, KVA Rate & Aerial Bundle Cable, 95 mm2, (600/1000 V Rat-

ed) (2) Items Ks

DMP/L-027(16-

17) Submersible Pump with Motor (4-6) KW (1) Item Ks

DMP/L-028(16-

17) Telephone Cable (2) Items Ks

DMP/L-029(16-

17)

630 KVA, 11/0.4 KV & 100 KVA, 11/0.4KV Trans-

former (2) Items Ks

DMP/L-030(16-

17) Electrical Cable (1CU x 185mm2) (1) Item Ks

Page 17: Myanmar Energy rief NEWS · according to a report in Pyi Myanmar Weekly journal. Rumours have swirled that there were difficulties finalising agreements, particularly on tariff prices

energy.frontiermyanmar.com

Organisation Description Deadline Contact

Myanma Petrochemical Enterprise (MPE)

Myanma Petrochemical Enterprise (MPE) under Minister of Electricity

and Energy (MoEE) invites companies to submit materials.

(1) Pontoon (80’×20’×6’)

(2) Machines and accessories: Receiver Gauge, Temperature Gauge &

Pressure Gauge(3)Items, Filter Element(12)Nos, Cooler Tunes for Gas Cooler(E-1703)Nos, Variable Frequency Drive(1) No, High Energy Ignition

Unit With Igniter(1)Set.

Bids should be made in Myanmar Kyats.

Application forms can be purchased at the office on 9.2.2017 and must

be submitted before 12:00 on 9.3.2017.

9/3/2017

No.44, department of Finance, Minister of Petrochemical

Enterprise (MPE), Naypyitaw.

Contact: +95 67411123

OPEN TENDERS

Myanmar Energy Brief | 17 February - 23 February 2017 17

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energy.frontiermyanmar.com

Organisation Description Deadline Contact

Ministry of Electricity and Energy

1. The Ministry of Electricity and Energy has received financing from the World Bank towards the cost of the National Electrification Project, and intends to apply part of the proceeds towards payments under the

contract for Steel Poles for National Electrification Project.

2. The Ministry of Electricity and Energy now invites sealed bids from eligible bidders for supply of steel pole 10 meter and 12 meter, for the total quantities of 11,484 poles to be delivered in 2017 and 2018 to multiple destinations in all Regions and States of Myanmar. Domestic preference with the margin of 15% will apply. The goods will be grouped

into 10 lots and bidders may submit bid for any one or more lots.

3. Bidding will be conducted through the international Competitive Bidding procedures as specified in the World Bank’s Guidelines: Procurement of Goods, Works and Non-Consulting Services under IBRD

Loans and IDA Credits & Grants by World Bank Borrowers [edition of January 2011 revised in July 2014] (“Procurement Guidelines”), and is open to all eligible bidders as defined in the Procurement Guidelines. In addition, please refer to paragraphs 1.6 and 1.7 setting for the World

Bank’s policy on conflict of interest.

4. Interested eligible bidders may obtain further information from Project Manager, Project Management Office, Office (27), Ministry of Electricity and Energy, nep.pom [email protected] and inspect the bidding documents during office hours 10:00 to 16:00 hours at the

address given below.

5. A complete set of bidding documents in CD with English Language may be purchased by interested eligible bidders upon the submissions of a written application to the address below and upon payment of a

nonrefundable fee of Ks 100,000.

The method of payment for the nonrefundable fee will be transferred to

the following account:

Electricity Supply Enterprise, account no.SEE10316 at Myanma Economic Bank in Naypyitaw, Myanmar. The transferred slip shall be submitted with the above application. Once the application and the transferred slip

received, the bidding documents will be provided in the CD.

4/4/2017

Bids must be delivered to the

address below on or before 10:00 am, 4 April 2017. Electronic

bidding will not be permitted.

Late bids will be rejected. Bids will be publicly opened in the presence of the bidders’ designated representatives at Director General Office,

Department of Electric Power Planning Office No (27), MoEE, Naypyitaw at 10:00 am, 4th April

2017.

All bids must be accompanied by a Bid Security as described in the

bidding document.

OPEN TENDER

Myanmar Energy Brief | 17 February - 23 February 2017 18

Page 19: Myanmar Energy rief NEWS · according to a report in Pyi Myanmar Weekly journal. Rumours have swirled that there were difficulties finalising agreements, particularly on tariff prices

energy.frontiermyanmar.com

Source: Myanmar Petroleum Trade Association. Myanmar Ks per litre Note: The original source refers to the figures as "fuel prices". According to our surveys of petrol stations, they are largely in line with retail prices in Yangon. The source notes that retail prices may vary from location to location due to transportation costs.

THIS WEEK’S NEW DATA

Myanmar Energy Brief | 17 February - 23 February 2017 19

Retail fuel prices by week, February 2017

W/E 13 Feb W/E 15 Feb W/E 20 Feb W/E 22 Feb

Diesel Ks. 700 Ks. 710 Ks. 710 Ks. 720

Octane 95 Ks. 760 Ks. 760 Ks. 760 Ks. 770

Octane 92 Ks. 720 Ks. 730 Ks. 730 Ks. 735

660

680

700

720

740

760

780

2-Feb 6-Feb 10-Feb 14-Feb 18-Feb

Diesel

Octane 95

Octane 92

Page 20: Myanmar Energy rief NEWS · according to a report in Pyi Myanmar Weekly journal. Rumours have swirled that there were difficulties finalising agreements, particularly on tariff prices

energy.frontiermyanmar.com

Source: Myanmar Petroleum Trade Association. Myanmar Ks per litre Note: The original source refers to the figures as "fuel prices". According to our surveys of petrol stations, they are largely in line with retail prices in Yangon. The source notes that retail prices may vary from location to location due to transportation costs.

Imported fuel prices by week, January– February 2017

W/E 3 Jan W/E 7 Jan W/E 17 Feb W/E 13 Feb

Octane 92 Ks. 705 Ks.705 Ks. 708 Ks. 708

Diesel Ks. 680 Ks. 680 Ks. 689 Ks. 689

THIS WEEK’S NEW DATA

Myanmar Energy Brief | 17 February - 23 February 2017 20

640

650

660

670

680

690

700

710

720

16-Jan 20-Jan 24-Jan 28-Jan 1-Feb 5-Feb 9-Feb 13-Feb 17-Feb

Octane 92

Diesel

Page 21: Myanmar Energy rief NEWS · according to a report in Pyi Myanmar Weekly journal. Rumours have swirled that there were difficulties finalising agreements, particularly on tariff prices

energy.frontiermyanmar.com

Source: Myanmar Petroleum Trade Association

THIS WEEK’S NEW DATA

Myanmar Energy Brief | 17 February - 23 February 2017 21

Average retail prices of fuel in Myanmar (Kyat/Gallon)

Cities 16 February 20 February 21 February 22 February

Petrol Diesel Petrol Diesel Petrol Diesel Petrol Diesel

Yangon 3,250 3,200 3,350 3,300 3,350 3,300 3,350 3,300

Pyimana 3,420 3,330 3,420 3,330 3,420 3,330 3,450 3,370

Lewe 3,600 3,450 3,600 3,450 3,600 3,450 3,600 3,450

Tatkone 3,500 3,450 3,550 3,450 3,550 3,450 3,550 3,450

Page 22: Myanmar Energy rief NEWS · according to a report in Pyi Myanmar Weekly journal. Rumours have swirled that there were difficulties finalising agreements, particularly on tariff prices

energy.frontiermyanmar.com

The Myanmar Energy Brief and the Myanmar Energy Monitor are produced by Frontier Myanmar Research Ltd.

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