Myanmar Energy Sector Development Public Company Limited (MESDPCL) has submitted a $300 million pipeline proposal to the Ministries of Planning & Finance and Electric Power & Energy, said Dr. Win Myint a member of the board of directors.
The plan outlines the construction of two pipelines, each 14 inches in diameter, running 650 kilometers from Hlegu township in Yangon Region to Mandalay Terminal in Mandalay Region.
The pipeline project will reduce oil transportation charges by as much as $12 million annually and deliver fuel to sub-stations in Bago, Phyu, Taungngu, Naypyidaw, and Meiktila along the way.
The sub-stations will significantly improve Myanmar’s rural energy penetration. The Bago sub-station reaching Mon and Karen states, the Meiktila sub-station reaching south and east Shan state and Kayah state and the Mandalay station accessing northern Shan state, Sagaing region, and Kachin state.
“The government approval process makes the timeline for this project uncertain. While the pipeline would considerably reduce costs and improve transport, allocating public or private land is always an issue of concern,” Dr. Win Myint noted.
Once launched, the project will sell shares publically and employ foreign engineers to provide the technical expertise.
Source: Myanmar Business Today
