A new public company formed by members of a Mandalay petroleum association intends to build 34 fuel tanks on the bank of the Ayeyarwady River, to refuel passing ships.
The Myanma Energy Development Public Company will build tanks that can hold 2 million gallons of fuel on 48 acres of land, secretary U Kyaw Kyaw told The Myanmar Times.
Known as a “fuel port”, the project will be located at the junction between the Ayeyarwady and Myitnge rivers in Mandalay Region, and will break ground in the coming month, he said.
Members of the Myanmar Petroleum Trade Association (Mandalay) came up with the idea, under the direction of the regional government, he said, adding that a lack of quality data on fuel access along the river can sometimes result in ships running out of fuel.
Fuel transported to Mandalay from Yangon can also be stored in the tanks for later use. For Mandalay Region, the estimated monthly demand for octane is 5.5 to 5.7 million gallons, and for diesel it is 4 million to 4.2 million gallons. The project will be implemented in phases, with each phase dependent on the success of the last.
“Initially we will build one tank,” said U Kyaw Kyaw. Each 1 million gallon tank costs around K800 million to K1.5 billion to build, he said.
If its initial investment is successful, the company plans to sell shares to fund additional tanks.
For now, it comprises 30 shareholders, who have each contributed an equal amount, U Kyaw Kyaw said, adding that he has put up K200 million.
The land is owned by the companies involved, he added. “When we formed the public company, some of us put up land and others paid money for the investment.”
Source: Myanmar Times
