| Mee Laung Chaing, Ayeyarwady Region | ||||||||||||||||
| LNG gas-to-power | ||||||||||||||||
| Supreme Group / Zhefu Group / China Huadian Corporation (BOT) | ||||||||||||||||
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| July 2021 (target) | ||||||||||||||||
| $2.5bn | ||||||||||||||||
| 1,390MW (expected) | ||||||||||||||||
| 170 miles of transmission line, from Mee Laung Chaing to Hlaingtharyar in northwest Yangon | ||||||||||||||||
| four 225MW gas turbines and two 245MW steam turbines | ||||||||||||||||
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The Ministry of Electricity and Energy called for expressions of interest in late 2016 for LNG solutions. It subsequently appeared that a tender was being planned, though this did not materialise, leaving companies to approach the ministry directly with their plans.
Two prominent projects have since emerged as front-runners, one at Kanbauk in Tanintharyi Region and one at Mee Laung Gyaing (other spellings include Mee Laung Chaing and Milaunggyaik) in Ayeyarwady Region.
In January 2018, Supreme Group and its partner Zhefu Group from China signed a "notice to proceed" for the 1,390MW project. This is not a power purchase agreement, and a number of approvals are still required. Media reports from mid-2017 state that Switzerland-based Gunvor Group is also involved in the project, though this was not announced at the Naypyitaw event in January 2018. Supreme Group clarified in February 2018 that Gunvor was not part of the consortium, though may supply LNG. It did however leave the door open to other consortium partners.
In January 2020 it was reported that Zhefu is expected to be the majority shareholder in the project, while Supreme will hold only a 20% stake.
The project will cost $2.5bn and take three years to build for the first phase after which the facility will begin generating 500MW of power. Phase 2 will take an additional six to 12 months to complete.
Authorities say they will later extend the grid through Rakhine and Chin states and northern Ayeyarwady Region using power from Mee Laung Chaing.
Frontier magazine (not associated with Myanmar Energy Monitor) reported the company plans to build a floating storage regasification unit about 1.6km offshore, capable of docking 80,000 tonne vessels.
Project backers have stated that as of late 2018, discussions are ongoing on the PPA, with some of the tarriff to be paid in kyat, and some possibly in dollars and yuan. Phase one is to be open within 36 months of signing the final documents, and the full project within 48 months.
Project design
An FSRU will be built near the project, which will be connect to the project via a pipeline.
The plant includes four 225MW gas turbines and two 245MW steam turbines. Power from the plant will be connected via 170 miles of transmission line, from Mee Laung Chaing to Hlaingtharyar in northwest Yangon. The transmission line will be built under a build and transfer system.
In January 2020, the Myanmar Times reported U Aung Htoo Htoo as saying the project will include three 500MW gas turbines to be imported from the US or Europe. The reason for the discrepancy is unclear, but it is possible that the project specifications have changed slightly.
Developments
February 2018
Following the Notice to Proceed, the consortium said it must negotiate and sign project agreements with the Ministry, as well as completing the EIA and SIA, financial close, and then construction of the facility, including transmission lines.
March 2018
Media reported that construction had begun. However, this information is incorrect andmisleading.
May 2018
Former Minister for Industry and current MP for the opposition USDP U Myint Maung claimed in parliament that Minister U Win Khaing's companies had been connected to Supreme, one of the backers of the Mee Laung Gyaing LNG-to-power project and Kyaukphyu combined-cycle plant. This allegation was later refuted by Supreme. U Myint Maung also claimed that a tender was needed, though this was disputed by U Win Khaing.
August 2018
Minister U Win Khaing met with Zhefu and China Huadin in Beijing to discuss projects in Myanmar.
October 2018
Company officials confirm discussions on the PPA are ongoing.
February 2019
A DPP official states work on the draft PPAs are underway by the Ministry of Electricity and Energy, with the goal of submitting the drafts to five concerned ministries as soon as this month. The official also suggested the current goal is to complete the PPAs in 2019.
November 2019
The PPA for the 1,390MW LNG-to-power project is expected to be signed before the end of this year, Deputy CEO of Supreme Trading U Htu Htu Aung said.
January 2020
The backers now hope to have a PPA signed within the first three months of 2020, according to local media. The Myanmar and Chinese governments inked a letter of intent (LoI) to accelerate the project.
The same month, Deputy CEO of the company U Htu Htu Aung said that they aimed to begin work on the project in July this year.
Supreme Group, United Resources and Engineering, and Yunna Energy Investment Group also met with Chairman of the Amyotha Hluttaw Construction, Industry, Electricity and Energy Development Committee U Saw Moe Myint; committee members; and Minister of Electricity, Industry and Transport for Ayeyarwady Region U Win Htay. The parties discussed the ESIA for the project, plans for moving forward and plans to invest in the surrounding communities.
May 2020
United Resources Engineering Company issued an invitation for companies to apply to pre-qualify to provide EPC services for the project. The window for submission was only one week.
June 2020
Chinese Ambassador to Myanmar Chen Hai and Union Minister for Investment and Foreign Economic Relations U Thaung Tun agreed to move forward with works on the project in a online meeting held on 19 June.
The same month, United Resources & Engineering Company invited companies to apply to provide investigation, design and construction supervision services for the implementation of an LNG terminal that will be part of the project.
September 2020
Supreme Group and Zhefu Holding paid compensation to residents of the Mee Laung Gyaing area in Ayeyarwady Region for land to be used for the 1,390MW Mee Laung Gyaing LNG-to-power project.
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