Myanmar Government signed a power purchase agreement (PPA) for first LNG plant in Myanmar

Myanmar has signed a power purchase agreement (PPA) to buy electricity from a liquefied natural gas (LNG) plant.

The project company of CNTIC VPower Group inked a five-year PPA with the Ministry of Electricity and Energy’s Electric Power Generation Enterprise (EPGE) on June 10.

Tariffs and other details have not been disclosed, but the energy ministry’s deputy permanent secretary U Soe Myint told local media on June 8 that the government would be paying around US$0.12 per unit (kilowatt-hour) of electricity.

The 400-megawatt LNG-to-power plant, located in Yangon’s southeast Thaketa, started commercial operations on June 14. The plant uses LNG imported from Malaysia. LNG cargoes totalling 190,000 cubic metres were delivered to Myanmar on June 4 a free-on-board arrangement by Malaysia's Petronas.

This marks the first PPA for an LNG project the Myanmar government has signed and is one of the five “emergency” power projects, totalling 1040MW, tendered by the energy ministry last year.

CNTIC VPower Group is a joint venture between VPower Group, a Hong Kong-listed firm backed by CITIC Group, and Chinese state-owned China National Technical Import & Export Corporation (CNTIC). The consortium has been developing two other LNG-powered projects in Yangon’s Thanlyin and Rakhine state’s Kyaukphyu.

In an announcement on the Hong Kong Stock Exchange, released June 15, VPower said it expects the Thanlyin and Kyaukphyu projects to be signed within this month.

The firm is also the sole developer of a proposed gas-powered plant in Magwe Region’s Kyun Chaung.

(The Myanmar Times: https://www.mmtimes.com/news/govt-signs-ppa-first-lng-plant-myanmar.html )

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