Sunday, August 20, 2017

Eleven apply for LPG joint venture tender

Eleven foreign and international companies have applied for a tender to form a joint venture with state-owned Myanma Petrochemical Enterprise for the wholesale distribution of liquefied petroleum gas (LPG) – a staple fuel used in Myanmar’s kitchens.

The Ministry of Energy hopes to upgrade its LPG distribution to an international standard. Photo: StaffThe Ministry of Energy hopes to upgrade its LPG distribution to an international standard. Photo: Staff

According to the Ministry of Energy, 21 companies bought tender documents but only 11 had applied by the November 5 deadline.

The winner will upgrade eight storage containers each with a capacity of 5550 metric tonnes of LPG for Ministry of Energy-owned No 1 Refinery (Thanlyin), and to build a wharf with the capacity to load and unload 2000 metric tonnes of LPG.

This is the first time foreign companies will be allowed to distribute LPG in Myanmar, said U Min Min Oo, deputy permanent secretary of the ministry, at a press conference on November 12.

Two applicants are from Myanmar – Sabel Real Estate and Development and Myanmar Liquified Petroleum Gas Group.

Two Singaporean companies – Puma Energy Group and BB Energy (Asia) – have applied, as has India’s Indian Oil Corporation, and a tie-up between Japan’s Marubeni Corporation and Tokai Holdings.

Five local-foreign joint ventures bid for the tender – Thailand’s Siamgas and Petrochemicals Public Company with Myanmar Lighting, Thailand’s SC Carrier Company with Mandalay Technology, Japan’s Sojits Corporation with Myanmar Independent Power Production, Sri Lanka’s Gas PLC with local firm Wide River, and Malaysia’s Jofu Holding with Myat Golden Global.

Director U Kyaw Soe Win said the ministry hopes to upgrade its LPG distribution to an international standard.

“LPG is fuel that can be used in kitchens. As it is necessary for home consumption, we will seek to distribute it with a stable price in order for it to be widely consumed,” he said. Existing supply of LPG is uneven and often disrupted.

“We also hope to prevent deforestation by consuming LPG as a substitute fuel for wood,” said U Kyaw Soe Win. The ministry plans to start its collaboration with a private sector partner in March or April next year, he said.

Myanma Petrochemical Enterprise has launched a number of tenders over the past few years, though many have not been completed.

Myanmar has three LPG plants in need of updating. A plant in Minbu township of Magwe Region opened in 1986, a Nyaungdon plant opened in Ayeyarwady Region in 2005 and a Kyun Chaung plant began in Magwe in 2010. Total installed capacity is 72.85 billion tonnes per year.

Translation by Thiri Min Htun