Negotiations still underway over Kanbauk LNG project

Negotiations between Total E&P, Siemens Myanmar and the government are still ongoing for the 1,230MW liquefied natural gas (LNG)-fired power plant project in Kanbauk, Tanintharyi Region.

Although reports surfaced recently that Total and Siemens proposed scaling back the US$2.1 billion project that was given the go-ahead by the government in January 2018, both sides were guarded over their statements on the future of the project when contacted by The Myanmar Times.

Total’s Myanmar general manager Romaric Roignan said the company remains committed to working with the government in a mutually beneficial way for all the stakeholders involved in the project and in the best interest of the country.

He added that there were discussions on how to leverage potential regional marketing synergies to reduce the cost of electricity for end-users. Roignan noted without elaborating that significant progress has been made in the project negotiations.

It was reported that both Total and Siemens has made an alternative proposal with less financial investment on their part although sources said nothing has been firmed up at this point. Siemens has decided to take a smaller role by providing the technology and expertise.

The initial proposal called for a power plant, an LNG floating storage regasification unit (FSRU) and a 450-kilometre 500kV transmission line linking Kanbauk with Payagyi in Bago Region. The counter-proposal would see power transmitted to Yangon through a 230kV line that will be financed with a soft loan from the Asian Development Bank.

An official from the Ministry of Electricity and Energy said there were varying proposals being discussed at this stage. “We are not able to comment at this stage, and it is natural too that many proposals will emerge with reductions and additions,” the official said.

Meanwhile Roignan said in statement that ever since the project was given the greenlight, a significant amount of work has been completed for the gas, power plant and transmission line packages including environmental and social impact surveys.

Also, detailed studies have been made for the gas infrastructure design and mooring system, the tender process with the major FSRU providers as well as the technical surveys involving the geotechnical, geophysical, topographical and metocean aspects of the project.

Besides the technical work, a team has also been engaging with the relevant local communities and public consultations were carried out with 259 communities. – Translated

Source: Myanmar Times

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