Magwe Region to build five small-scale refineries

Magwe Region is developing five Octane 92 mini refineries which will be able to refine up to 30,000 gallons of oil per day once they come into operation, said Magwe Region Natural Environment, Resources and Energy Minister U Myint Zaw.

The project is being carried out across 200 acres of land five miles from Pakokku. Sunny Global Manufacturing Co. Ltd, Power 95, Petro China, Asia Energy and Myanma Mandaing Company are among the companies which won the tender to build the five refineries.

In fact, several local companies were first given permits to develop the refineries, but the project was put up for tender after some of the local firms withdrew. As these investments are beyond the authority of the regional government, the Ministry of Electricity and Energy will now oversee the tender process and provide the necessary permit approvals, U Myint Zaw said.

Production capacity is estimated to be between 3000 gallons and 30,000 gallons per day, enough to meet regional consumption. Should local demand rise, oil can also be imported and refined locally.

Magwe Region produces its own oil from hand-dug wells, but this is sent to refineries in Ayeyarwady, Sagaing, Bago and Mandalay for refining and processing, resulting in additional transportation costs and lower-quality products.

“With these small-scale refineries, we expect to refine up to Octane 92 standards. If so, residents of Magwe will be able to use higher quality oil at a lower cost,” the minister said.

“Some of the investors have already started paving new roads and setting up the necessary infrastructure and processes needed to build the refineries. Sunny Global Company, a joint venture between a local and Chinese company, has made the most progress among them and is able to build the refineries and commence operations within six months,” he said.

However, some delays have occurred in importing construction machineries due to the outbreak of VID-19.

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Source : Myanmar Times

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