High cost of LNG poses problem for Myanmar

Myanmar’s government could struggle under the high cost of subsidising LNG if the country’s planned import projects are all built Myanmar’s government could struggle under the high cost of subsidising LNG if the country’s planned import projects are all built.
By Andrew Walker 14 February 2018 0 29574
Production is declining at Myanmar’s offshore Yetagun and Yadana fields. (Total) Production is declining at Myanmar’s offshore Yetagun and Yadana fields. (Total)

The Burmese government greenlit four gas-to-power projects late last month, but negotiations over the price of electricity could prevent them from progressing to FID.

Myanmar’s gas export commitments mean it will have to import LNG to supply three of its planned gas-to-power projects. The higher cost of imported LNG compared with domestically produced gas presents a problem for the government, which heavily subsidises the cost of power. Negotiations over the price of electricity produced from these projects will be a major factor in whether they are...

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