Jul 31, 2014

MAPCO to Build Rice Processing Complexes in Nay Pyi Taw, Ayeyarwaddy

Myanmar Agribusiness Public Corp (MAPCO) is undertaking the construction of a 220-tonne rice processing complex in A Hlyin Lo village near the town of Pyinmana in Nay Pyi Taw.

The complex, which is set to begin operation in late 2014, will consist of a 120-tonne rice parboiling plant and a 100-tonne white rice milling plant,

It is reported that MAPCO will invest K900 million in the project.

MAPCO is also jointly investing in a project to construct a rice parboiling plant that can produce 7,000 tonnes per year in the town of Kyaik Lat in Ayeyarwaddy region.

The project, where Mapco owns a 55 percent stake, is set to begin operation in 2014.

“Construction of a 100-tonne white rice milling plant costs around K500 million ($500,000) with just the machinery accounting for K250 million. The cost rises to at least K400 million if you include the buildings and foundation. The expenditure increases for a 120-tonne plant,” told U Thaung Win, secretary of Myanmar Rice Millers’ Association.

Parboiled rice produced from the upcoming plants will be exported to new markets in Europe and Africa in addition to Russia, which is already buying parboiled rice from Myanmar.

MAPCO is currently constructing two main milling buildings that are 180 feet long and 80 feet wide simultaneously at the project site in Pyinmana.

Source: Myanmar Business Today

1st Myanmar CNG for Transport, Industry and Power 2014 (Event report)

The inaugural 1st Myanmar CNG for Transport, Industry and Power 2014, co-organized with ANGVA and Myanmar New Technology Co. Ltd (MNT), successfully brought together 137 hard-to-access local stakeholders in one location, one room. 17 countries are represented at this forum. The gold sponsor is Hexagon Lincoln and 4 exhibitors were represented by Hexagon Lincoln, SAFE, Landirenzo, BRC and GT Autogas.

Key local stakeholders that attend include U Aung Htoo, Deputy Minister, Ministry Of Energy, U Myo Myint Oo , Managing Director, Myanmar Oil and Gas Enterprise (MOGE), U Phay Zin Tun, Director General – Energy Planning Department, MOGE, U Aung Khaing, President, Yangon Electricity and Supply Board, U Aung Khin, Regional Minister, Ministry of Transport, Col Khin Maung Kyaw, Deputy Minister, Ministry of Industry, U Kway Soe, Regional Minister, Ministry of Energy & Forest , Col. Myo Myint (Retd.), Managing Director, Bandoola Transportation Co. Ltd, Col. Thein Tun Win (Ret), Director – Parami Taxi, Bandoola Transportation Co. Ltd, Col. Thoung Win (Retd), Executive Committee Member, Myanmar Engineering Society, Col. Yin Mg Sein (Ret), Director – Buses, Bandoola Transportation Co. Ltd, U Myo Chit, Chairman, Flying Swallow Transport and many more.

The opening keynote VIP address was given by Chief Minister of Yangon, U Myint Swe. Following his opening speech, Lee Giok Seng, Executive Director, ANGVA gave a welcome address to the audience. Following the end of the speech, Chief Minister of Yangon, U Myint Swe, Lee Giok Seng and other VIP entourage visited the exhibition area while having refreshments.

Following the break, U Tun Maung Maung, Deputy Director–Production from Myanmar Oil And Gas Enterprise (MOGE), Ministry Of Energy gave a presentation on “Gas Utilization In Myanmar: Opportunities And Challenges”. He noted that local natural gas demand growth is increasing with a rate of 12.5 % per annum and Myanmar has a master plan to increase production and for export of natural gas. New discoveries of gas can be expected from both onshore and offshore blocks and will be prioritized for domestic supply. Myanmar has both onshore and offshore natural gas production whereby onshore natural gas production was 65 mmscfd while offshore production was 1530 mmscfd. All onshore gas was allocated for domestic consumption (29% for transport, 18% for power, 13% for industries, 31% for feedstock, and 9% for others). For the offshore gas, 1202 mmscfd gas was exported to Thailand and China and 328 mmscfd was allocated for domestic consumption (95 % for power and 5 % for industries).

One of the biggest transportation companies utilizing CNG as fuel presented next. Col. Myo Myint (Retd.), Managing Director from Bandoola Transportation Co. Ltd gave a focused presentation on “ CNG Conversion and Usage in Myanmar”. Bandoola owns the Parami CNG station – the flag-off location for ANGVA 2011 Green Highways. The Parami CNG Station is located inside the Bandoola Transportation’s CNG bus depot. Bandoola Transportation operates 600 CNG buses and 700 taxis and the Parami CNG Station also supply CNG to other CNG vehicle operators.

The next presenter U Hla Win Htay, General Manager- CNG from Myanmar Oil and Gas Enterprise (MOGE), Ministry Of Energy gave a detailed presentation on “Status of CNG Activities & Technology in Myanmar”. He explained the beginning of NGV in Myanmar in 1986. Currently there are 27,756 natural gas vehicles and 45 stations (including daughter stations) in four areas of Myanmar i.e. Paleik (Mandalay), Chauk, Yenangyaung and Yangon. Most of the natural gas vehicles (97%) are located in Yangon. All these vehicles are consuming around 21 mmscfd of natural gas from the onshore Nyaungdon gas field. He also highlighted the initiative taken by MOGE to ensure the safety of CNG cylinders by establishing a CNG Cylinder Recertification Centre in 2010. It is now mandatory for all 5 years old or more CNG cylinders installed onboard natural gas vehicles to be tested and recertified by MOGE. The next two speakers Punnachai Footrakul, Vice President – NGV Marketing, PTT Plc and Chairani Rachmatullah, Senior Manager - Energy Planning & Evaluation, PT PLN concluded the first half of Day One. Punnachai spoke on Thailand’s NGV experience with the topic “Sustaining the NGV Business Growth in Thailand” while Chairani shared Indonesia’s state-owned electricity company’s experience in utilizing CNG. She presented on “CNG Utilization for Power Generation – Experience from World’s Largest CNG and Storage Utilization User”.

The forum’s Gold Sponsor, Hexagon Lincoln, presented after lunch with the topic “Efficient Pipeless Gas Transportation for the Transport, Industrial and Power Generation Sectors”. Hexagon Lincoln’s Regional Sales Director – Asia Pacific, Goh Tat Chuan gave the presentation. Lee Giok Seng, Executive Director, ANGVA gave another presentation on “Developing a Sustainable NGV Market”. Jonas Giuliani, Asia Pacific Markets Development Manager from SAFE S.p.A continued next with a presentation on “CNG Infrastructure Expansion with Effective and Tailored Refuelling Solutions”

A Panel Discussion on “Forging Ahead with CNG for Transport, Industry and Power Generation” was convened with 4 panellists comprising of Robbie Sukardi (APGNGI), Punnachai Footrakul (PTT PLC), Goh Tat Chuan (Hexagon Lincoln), and U Zeya Thura Mon (Managing Director –Zeya & Associates, Myanmar). The Panel Discussion was moderated by Lee Giok Seng, Executive Director of ANGVA.

The second day began with an important overview on “The role of Natural Gas in Myanmar’s National Energy Policy”. Col. Thoung Win (Retd.), Chairman of the Energy and Renewable Energy Committee of the Myanmar Engineering Society is involved in the preparation of Myanmar’s National Energy Policy that is expected to be approved by the government in six months’ time. The National Energy Policy covers nine (9) sectors including the Oil and Natural Gas Sector. Under the Oil and Natural Gas sector, the policy objective includes expanding energy transportation infrastructure in order to transport energy to consumers and to expand utilization programmes of CNG for oil substitute and LPG as substitute for domestic fuels.

The next speaker, U Kyaw Kyaw Hlaing, Chairman of Myanmar’s Smart Group of Companies presented on an “Overview of the Power Sector and Outlook of Utilizing Natural Gas to Meet Increasing Demand”. U Kyaw Kyaw Hlaing highlighted that recoverable natural gas reserves from offshore of Myanmar is around 19 TCF on the low side and 40 TCF on the high side.

Two case studies on utilizing CNG for Industries were presented after the break. Robbie Sukardi, President of the CNG Association of Indonesia (APCNGI) spoke on “Utilizing CNG for Industries and Industrial Estates – Case Study Indonesia”; and Dinh Dang Vu, Manager of Planning and Sales, PetroVietnam Southern Gas gave a final presentation on “Effective CNG Mother-Daughter Infrastructure and Gas Transportation for Industries in Vietnam”.

After lunch the delegation visited MOGE’s NGV Refuelling Station and MOGE’s CNG Cylinder Recertification Centre.

In conclusion, first movers' advantage into Myanmar's CNG industry will benefit the most from this highly promising and lucrative marketplace. Special thanks to all speakers, Gold Sponsor, Exhibitors and participants for making the inaugural 1st Myanmar CNG for Transport, Industry and Power 2014 a success.
We look forward to welcoming you again at our next CNG event in Myanmar.
* Information is also provided by Lee Giok Seng, Executive Director, ANGVA

Myanmar earns US$ 1.3 billion in jade exports

Myanmar has earned US$1.3 billion from the export of jade stone over the last three years, according to the ministry of national planning and economic development.

Export earnings in the 2011-2012 fiscal year was US$ 34.2 million, US$ 297.9 million in 2012-2013 and US$ 1 billion in 2013-2014. The last fiscal year showed a significant increase in revenue.

Myanmar exports its jade mainly to China, Hong Kong and India. And gem merchants from Japan are also very interested in the valuable green stone mostly mined in northern Kachin State.

Hundreds of jade lots went on sale through a competitive bidding system at the 51st Myanma Gem Emporium in Nay Pyi Taw.
There is still a thriving illegal trade in jades and gems, many which a sourced from conflict areas where rule of law and controls are scarce, despite increasing attempts to stamp down in smuggling.

Myanmar export earnings from mineral products have reached US$ 71 million (US$ 2.9 million from the government and US$ 68.7 million from the private sector) according to the ministry of commerce.

Total investments in the mining sector by local entrepreneurs have reached Ks 13 billion up until June 30 this year.

Source: Eleven Weekly Media

Jul 29, 2014

FDI Tops $490m in Q1 2014-15FY

Foreign investment has topped $492.62 million in the first quarter of the 2014-15 fiscal year, with half of the total being directed at the communications sector, according to the Directorate of Investment and Company Administration (DICA).

The communication sector saw an influx of investment of $278.61 million, which was followed by the manufacturing sector receiving $141.145 million.

“We have also received proposals for more investment into the telecommunications sector. The sector is expected to receive the most investment this year,” told U Lin Tun, director of DICA.

The Myanmar Investment Commission (MIC) is approving mostly labor-intensive businesses and the total foreign investment is expected to reach at least $4 billion this year, he said.

Foreign direct investment in the 2013-14 fiscal year amounted to $1.19 billion.

Regionally-based companies make up the bulk of foreign investment, while European companies are investing heavily in the telecommunications sector, according to DICA.

International telecommunications companies, Telenor and Ooredoo have invested a large amount of capital and expects to launch service in the third quarter of this year.

“Myanmar’s telecommunications industry will catch up to other countries in the region. We expect mobile usage in ASEAN to soar by 2019. So we are working together with Telenor to install communication towers across Myanmar,” said Jan Wassenius, president of Ericsson Myanmar, Vietnam, Laos and Cambodia.

Ericsson aims to provide advanced technical support and solutions for the problems faced by telecommunications enterprises in Myanmar.

MIC has approved 96 foreign companies from January to June of this year, which are investing in telecommunications, manufacturing, hotel and tourism, mining and the agricultural sectors.

Source: Myanmar Business Today

Companies lining up for LPG joint venture

Twenty-two domestic and foreign companies have expressed interest in forming a joint venture for the Nyaungdone Liquefied Petroleum Gas plant, according to the Ministry of Energy.

The plant, to be located near Yoegyi village, in Ayeyawady Region’s Nyaungdone Township is expected to produce 30 tonnes of liquefied petroleum gas (LPG) per day.

Last April, the ministry invited companies to submit expressions of interest for production, storage, distribution and sale of LPG on a joint venture basis.

Foreign companies interested in the project include Mitsui, JGC, and Sojitz from Japan; PTT from Thailand; NK from South Korea; PUMA Energy (Singapore); Langfan CNPC Huaya Petrochemical Engineering, Shanghai Sino-Myanmar Investment Management, GDZR, China Huanqui Contracting and Engineering from China; and other companies from the US, Spain, UAE and Indonesia.

Myanmar companies in the race are Sein Kaung Gem Trading and Parami Energy Services.

The ministry’s Myanmar Petrochemical Enterprise operates three LPG plants in Minbu, Kyau Chaung and Nyaungdone townships.

Minbu LPG Extraction Plant, established by Hitachi Zosen of Japan, started its operations in 1986.

Kyun Chaung Plant, formed with CMC Dong Fang International of China, opened in 2010.

Nyaungdone Plant, also formed with CMC Dong Fang International, started in 2005.

In a related development, the ministry has invited bidders for the Thalyin refinery and distribution of jet fuel.

Source: Eleven Weekly Media

Jul 28, 2014

Malikha Villa Serviced Apartments - Quality Accomodation for Foreing Executives in Yagnon


For more information, please contact the person in charge of development: Dr. Soe Shwe (mobile: 098 761 898)

Myanmar pipeline carries 1.87 bln cm gas to China in first year

China imported 1.87 billion cubic metres of gas through the China-Myanmar gas pipeline in its first year of operation, China National Petroleum Corp (CNPC) said on Monday, as the pipeline slowly ramps up to full capacity.
The multibillion-dollar gas pipeline stretches over 2,400 km (1,500 miles) from the Indian Ocean through Myanmar to the southwestern Chinese city of Kunming, allowing China to bypass the Malacca Strait, one of the world's busiest shipping lanes.

The pipeline should be able to carry up to 12 billion cubic metres of gas a year at full capacity, while a parallel oil pipeline due to come online later this year will carry up to 440,000 barrels of oil a day.

The gas pipeline brings gas to China from the Shwe fields off the coast of Myanmar's western state of Rakhine.

CNPC, which owns the pipelines, said in a statement posted on its website that the gas pipeline also supplied 60 million cubic metres of gas to Myanmar.

Myanmar officials have said previously that it would take about a year to fill the pipeline to full capacity.

In June, Myanmar announced revenues of $3.3 billion from gas exports in the last fiscal year, down from the previous two years, due to increased domestic needs. Revenues are expected to grow as exports to China through the pipeline increase.

Source: Reuters Africa

 
Copyright