Mar 4, 2014

Zawtika to provide 100 million cubic ft of gas for local consumption

The Zawtika Gas Project operated by Thailand’s PTT Exploration and Production (PTTEP) will provide 100 million cubic feet of gas for local consumption starting in early March, according to the Ministry of Energy.

The gas project will soon produce 300 million cubic feet of gas per day. PTTEP International is operating the project and has an 80 percent stake while Myanmar’s Oil and Gas Enterprise own the remaining 20 percent.

“According to old contract, we agreed that 60 million cubic feet will be produced for local consumption. But the demand is between the customer and the dealer. That’s why 100 million cubic feet gas will be sent for local consumption among 300 million cubic feet,” said Pe Zin Tun, Director General of the Ministry of Energy.

Myanmar agreed to operate Zawtika Gas Project with PTTEP under a 30 year lease system. The Zawtika project is about 300 km south of Yangon and 290 km west of Dawei.

PTTEP has been working in Myanmar since 1989 and it recently announced that it will invest US$3.3 billion in Myanmar over the next five years.

It was granted seven offshore and onshore oil and gas exploration contracts, and is currently in the bidding for contracts to explore new offshore blocks.

The company also holds a 25 percent stake in the Yadana and Yetagun offshore gas projects being developed by TOTAL of France and Petronas from Malaysia.

Myanmar receives over US$ 14 billion in foreign investment in the oil and gas sector and hundreds of national companies have been registered with the Ministry of Energy to work in joint venture with the foreign investors.

Source: Eleven Weekly Media