Work on urgently needed gas pipeline might only start next year

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

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