Jun 10, 2014

APR Energy to produce power from Shwe natural gas

APR Energy, from the United States, is coordinating with the Ministry of Electricity and Supreme Group of Companies to produce electricity from natural gas at the Kyaukse industrial zone.

The electricity will come from a power plant using natural gas from the Shwe natural gas project run by China, 15 percent of which will go back to the industrial zone and the rest will

supply the national grid.

“We implemented the project to fulfil a need for electricity. The demand for electricity is high because the public consumption and foreign investment is high. We had no shortages of electricity this summer because of these projects,” said chief engineer Win Myint.

The plant has 82 gas turbines and can produce 103 megawatts of electricity. The project will run for one and a half years and will cost between US$80 million and US$100 million, and will receive support from the U.S. government.

Electricity produced from the project will cost Ks 33 per unit (about US$0.034 cent) which is extremely competitive because of the government’s subsidies, according Clive Turton, APR’s managing director of the Asia-Pacific region.

“Our company has been interested in Myanmar for a long time. We constructed the project as fast as we can after we won the tender. The international companies are amazed that we can set the cheapest rate in such a short time. Quite frankly, it is because of the assistance given by the U.S. government,” said Turton.

This will be the first gas-fired power plant built by a U.S. company in Myanmar and will be operational in three months time, according to the Ministry.

The project is using 20 million cubic feet of natural gas every day sourced from the Myanmar-China gas pipeline, said Zaw Naing Thein, Deputy Chairman of Supreme Group of Companies.

APR Energy has built the project at a loss, something not possible without U.S. government involvement, said Zaw Naing Thein, adding that this has nothing to do with politics.

Source: Eleven Weekly Media