Asia AVA Gas to build LPG facilities in Yangon

Asia AVA Gas Company has entered into a joint venture with Myanma Petrochemical Enterprise (MPE), which falls under the remit of the Ministry of Electricity and Energy (MOEE) to undertake a project enabling the import, storage and distribution of liquefied petroleum gas (LPG) in Myanmar, Daw Yin Yin Aung, deputy director of MPE, told The Myanmar Times.

Asia AVA Gas Company, in turn, is a JV between Singapore’s AVA Kahyasis Investment and domestic firmsSky Construction Company Ltd and Guiding Star Group Ltd.

The project will include construction of a jetty, storage tanks, loading and unloading facilities and a gas-filing plant. It will involve an initial investment of $60 million and be developed across 32 acres of privately-owned land near Bogyoke Village, which is in Thalyin township, Yangon. The permitted duration of investment is 50 years.

The project, which received Myanmar Investment Commission approvalin 2016, has already completed the necessary topographic surveys and soil tests.

Development will commence with the construction of the jetty and 12,000-tonne storage tanks to receive and store imported LPG. Asia AVA Gas Company will also arrange to distribute the gas, which is expected to replace electricity and charcoal in cooking.

Currently, the location and design of the jetty is being discussed with the Myanmar Port Authority. Development of the entire project is expected to take 3 years to complete once construction of the jetty is approved. Commercial operations and distribution will take place shortly after completion.

The MOEE is aiming to supply LPG to 1.5 million households before its term ends in 2020. Last December, Parami Energy Services Company won a tender to lease a state-owned LPG terminal in Thanlyin under a Public-Private Partnership to import, store, market and distribute LPG in Myanmar.

It was the first time the government has leased out state-owned facilities. In the past, the import and distribution of LPG was conducted solely by the MPE.

Last year, Elite Company also completed construction of a jetty and storage facilities at the Thilawa Special Economic Zone. Myanmar officially imports 4,000 tonnes of LPG, mostly from Singapore, per month.

Source: Myanmar Times

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