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December 8, 2019

NEWS
PRODUCTION

Sugar production to be delayed this year, insiders say

Image result for sugarcane plantationSugarcane crushing, which normally starts every November in sugar mills in Myanmar, will be postponed to December this year, an industry insider has revealed. Sugar prices have been dropping over the last year even uncommon weather conditions have delayed the harvesting of sugarcane. This has led to the postponement of the crushing process by a month.

Nawaday Sugar Mill has announced that it will offer K45000 per tonne of sugarcane while Great Wall, another miller, is offering K40000 per tonne. Other sugar mills have yet to announce their prices. The current price per tonne of sugarcane is K4000 to K5000 lower than it was last year. Nawaday and Great Wall are expected to be the first sugar mills to start operating in early December.

Last season mills processed more sugarcane, leading to a surplus of sugar building up at the mills. This is said to be the leading cause of the anticipated contraction in cane purchases this year. In 2015, a tonne of sugarcane was priced K50,000 then it became K45,000. However, this year, sugar prices dropped and the price for a tonne of sugarcane depends on sugar prices. Although the price of sugar has stabilized somewhat, the drop in prices are expected to impact the incomes of farmers and farm workers.

Source: Myanmar Times 

Work on urgently needed gas pipeline might only start next year

Image result for Zawtika natural gas fieldAlthough a new pipeline for the Zawtika natural gas field is urgently needed, work on the project is expected to only begin next year 2020, due to negotiations over the cost of the project, officials say. The cost for the new pipeline is supposed to come from revenue generated for the Myanmar Oil and Gas Enterprise (MOGE) by the current Kanpauk-Myaing Kalay pipeline that transfers natural gas from the Zawtika field for local use. The Zawtika M9 block is being worked as a 80/20 joint venture by Thailand’s PTT Exploration and Production Public Co Ltd and MOGE.

A total of 9.7 cubic metres (345 million cubic feet) of natural gas is produced daily from the Zawtika Field. Some 2.8 million cubic metres for daily domestic consumption is channelled from the offshore field in the Gulf of Moattama to the Zawtika Operation Centre (ZOC) in Kanpauk Township, Tanintharyi Region. The natural gas is then transferred to Myaing Kalay, Kayin State, via the 200km,6 metre wide Kanpauk-Myaing Kalay pipeline. The rest of the gas is sent to Thailand.

Although the Field is producing natural gas at a good rate, the existing pipeline is not efficient enough to handle the full 2.8 mil cbm of natural gas meant for Myanmar. At present, it can handle only between 1.69 mil and 2.26 mil cbm a day, said PTTEP Myanmar. PTTEP,  responsible for upgrading the pipeline, made a proposal for the project to MOGE in 2018 and is waiting for the decision to start work. Once approved, MOGE is expected to call a tender for the project which is expected to take around two years to complete. The field is 230 km off the coast of Myanmar.

Source: Myanmar Times

Gas from block A6 to commercially viable in 2023

Image result for Gas from block A6 to commercially viable in 2023Commercial gas production will commence at the A6 block Shwe Yee Htun-2 discovery, offshore Myanmar, in 2023. The development comes after the MOEE on September 22, 2019 said gas could be produced at Shwe Yee Htun-2 well. Further drilling has shown gas extraction at depth of 2,325 meters possible at the well at block A6, about 100 km away from Pathein in Ayeyarwady Region.

MPRL E & P Company will undertake production activities at the first-ever commercial offshore oil and gas production project once it is approved. A total of five wells have been drilled at block A-6 since 40 meters of net gas pay was first discovered at a depth of 4,820 meters at the Shwe Yee Htun-2 in 2018. Gas has been found in all five subsequent wells.

MPRL E & P holds a 20 percent stake in block A6, while Woodside Energy from Australia and French energy giant Total hold stakes of 40pc each. Under an existing agreement, Total is to take over operations at the block during the development phase. The State will receive 25pc of all gas produced from Shwe Yee Htun-2. The Shwe Yee Htun-2 discovery adds to the Shwe Yee Htun-1 and Pyi Thit-1 gas discoveries made in 2016 and 2017, respectively, at the block.

Source: Myanmar Times 

MADB expands loans for 8 strong demand crops

Image result for beans and pulses plantationTHE Myanmar Agriculture Development Bank under the Ministry of Planning and Finance will give loans for the strong demand crops under eight categories in 2019-2020 FY, in addition to the existing 14 items of agricultural produce.

The new scheme will cover four beans (haricot bean, lablab bean, rice bean and green bean); two crops edible oil (flaxseeds and sunflower seeds), and two kitchen crops (onion and chili). The loans for these crops will be given commencing this winter at K 100,000 per acre like other crops.

To support the small-scaled farmers, the government increased to this amount from K20,000 per acre in 2017- 2018 FY and K50,000 per acre in 2018-2019 FY respectively, while the loan for paddy was increased to K150,000 per acre from K100,000 per acre in 2016-2017 FY.

Source: Global New Light of Myanmar

Peanut oil fetching high price in central regions due to low crop yield

Image result for Myanmar peanut oilPeanut oil is being sold at a high price in the central regions — Kyaukpadaung and Yenangyoung townships — due to low production of peanut, according to some oil shops and peanut brokers.

Currently, only old peanuts are being sold in the market because the new crop has not been harvested yet. Additionally, peanut oil is also being exported to China, therefore, the price is not likely to fall, said Ko Kyi Khine, a broker. The prevailing market price of peanuts is K 3,000 per viss (1 viss is equivalent to 1.6 kg), while peanut oil is being sold for K 6,600 per viss. The price has remained on the high side, while the supply has been low in the market. Peanuts are mainly cultivated in the central regions of Myanmar. Last year, the price of peanuts had reached K 14,000 per basket, while the wholesale price of peanut oil was in the range of K6,000 per viss.

Last year’s high price encouraged growers to cultivate peanuts this year, said U Tin Yun, a farmer from Yenangyoung Township. A total of 36,093 acres of monsoon peanut is planned to be cultivated during the rainy season in Yenangyoung Township, according to the Township Agriculture Department.

Source: Global New Light of Myanmar 

Home Local News PTTEP raises sales volume to 8.5% this year

Related imagePTT Exploration and Production Public Company Ltd has raised its sales volume of 318,000 barrels of oil equivalent per day (BOED) to 345,000 barrels, or 8.5 per cent, for 2019 from its natural gas and oil exploration blocks in Thailand and other countries. After the PTTEP revised its five-year investment plan, it decided to increase the earlier target sales volume for the five years from 2019 to 2023.

Now, the PTTEP targets to raise its daily sales volume of 345,000 barrels for 2019, 365,000 barrels for 2020, 380,000 barrels for 2021, 409,000 barrels for 2022 and 437,000 barrels for 2023. According to the company’s announcement, the PTTEP completed the acquisition of Murphy Oil Corporation in Malaysia in early July, resulting in an increase in petroleum sales by approximately 48,000 BOED for the second half of 2019. This will significantly contribute to the 2019 target sales volume of 345,000 BOED.

Phongsthom Thavisin, Chief Executive Officer of the PTTEP, said the company has had success, not only in Thailand but in other countries, thanks to its business expansion strategy, which includes a plan to accelerate exploration of oil and gas in Myanmar, covering the Zawtika project. Also, the PTTEP has revised the higher capital expenditure for the five-year period to US$21.354 billion from $16.105 billion.

Source: Global New Light of Myanmar 

Local coffee growers marginally hit by falling prices

A drop in global coffee prices has affected Myanmar’s coffee growers. Depending on the type of coffee, the price has dropped to around US$ 500 a tonne.

Coffee growers in Myanmar enjoy some protection from price volatility though. “While the volume of coffee exported has declined due to the global oversupply, growers in the Ywa Ngan area in Shan State still receive assistance from the United States Agency for International Development. Also, our contracts have fixed prices. This has cushioned the effects of falling global prices for us,” said U Win Aung Kyaw, chair of Ywa Ngan Coffee Association.

Currently, Myanmar exports coffee to the US, Europe, Switzerland, Japan, Taiwan and other Asian countries, said Myanmar Coffee Association’s chair U Ye Myint.

In lowland areas, coffee is being largely grown around Kayin State’s Thandaunggyi township. In highland areas, the crop is largely grown around Mandalay Region’s Pyin Oo Lwin township and Ywar Ngan township in southern Shan State.

An adult coffee tree produces fruit between December and February. After coffee trees are grown for about two years in a nursery, they are replanted in larger plantations. The plants yield fruits which are ready for harvesting about three years later.

Local and foreign coffee buyers are more interested in procuring coffee beans which have won awards at international contests, said U Min Hlaing.

The next such competition will be held on March 18 in Yangon and all the coffee growers from Ywar Ngan are expected to participate, said U Win Aung Kyaw.

Source: Myanmar Times

Factory in Thadukan zone making 40 electric cars a day

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The Khaing Khaing Sangda Motorcar factory in the Thadukan industrial zone, Shwepyitha Township, Yangon Region, is producing 40 electric cars per day.
Production at the factory started this month on two new models of hybrid electric cars — KSD-V1 and KSD-V2. The cars are being jointly produced by China’s Yue Di and the Khaing Khaing Sangda Motorcar factory.
“At present, more than 100 electric cars have been manufactured. The cars will get a licence number by the end of March. The factory plans to continue producing electric vehicles.

Source- Global New Light of Myanmar

90-megawatt gas-fired station opened in Myingyan Township

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A 90-megawatt gas-fired station was opened in central Myanmar to serve as an additional power supply in summer when the domestic electricity demand reaches its peak.
Constructed by the Hong Kong-based VPower Holdings Limited and its local partner Zeya & Associates Co. Ltd., under build-operate-own (BOO) system, near a steel factory in Myingyan Township, Mandalay Region, the station will generate 90 megawatts in summer and 45 megawatts in the rainy season, during which the production capacity of hydropower stations is high.
Normally, the station will burn 20 million cubic feet of natural gas per day supplied by Shwe offshore field, but thanks to the organic rankine cycle (ORC) technology, that raises the efficiency of generators by two percent, it uses less natural gas, the Union Minister explained.
He then explained the tender process and test run of the station that has been supplying power for the public and industries of Myingyan, Taungtha, Nwatoegyi and Bagan-NyaungU townships, water pumping stations in Myingyan District and Myotha industrial zone since 1 February 2019 through the 132-kv subpower station.
The Shwe offshore gas field in Myanmar waters is supply gas for generating 382 megawatts of electricity including in rural areas of Kyaukphyu and Central Myanmar.

Source: Global New Light of Myanmar

Over Ks30 billion loans disbursed to more than 800 farmers

Under the (JICA) Japan International Cooperation Agency’s two-step loan scheme, a loan of over Ks30 billion have been disbursed to more than 800 farmers during more than one year.

Currently, the bank is granting loans to farmers in 43 townships for the purchase of 169 agricultural machineries.

Under the JICA’s two-step loan project, the bank will disburse a loan of around Ks180 billion (15 billion Japanese yen) with the 40-year repayment period including the ten-year suspension period.

Under the project, the bank will disburse a loan of up to Ks50 million to an individual and up to Ks 0.5 billion to a group. The bank will disburse loans to farmers in order that they can buy agricultural equipment and trucks. The bank will give more priority to the farmers who will buy agricultural equipment.

Even though the disbursement of about Ks180 billion for the development of farm sector and the rural region is huge in term of amount, the loans will go to only two per cent of farmers across the country, she continued.

Source: Daily Eleven

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