Burma-Thailand Gas Pipeline Construction Set to Begin

Posted on: Thursday, 18 September 2008, 12:00 CDT

Text of report in English by Burmese newspaper The Myanmar Times on 25 August

Construction of the third Thai-Myanmar gas pipeline to carry natural gas from newly discovered offshore deposits in Myanmar is expected to begin at the end of the rainy season, said an official from the pipeline survey company said on August 19.

"The third gas pipeline connecting the M9 block to Thailand is expected to begin early next season," said U Thein Shwe, managing director of Geocomp Myanmar, which won a contract to conduct a survey for a gas pipeline route.


He said the company had submitted a feasibility report on the selection of pipeline routes in third week of July, and Thai oil company PTTEP was satisfied with the report.

According to U Thein Shwe, the proposed pipelines are on each side of the existing two gas pipelines, whose combined capacity is 1000 million cubic feet of gas a day (mmcfd).

However, he declined to disclose which route the Thai company has selected.

PTTEP announced at the end of July that it expected to seal a deal with Myanmar government to buy natural gas from the M9 block.

The proposed natural gas pipeline will carry 300 mmcdf, of which 240 mmcdf will be transported to Thailand and the remaining 60 mmcdf will be used for domestic consumption, the company said.

The M9 block is located about 300 kilometres south of Yangon, and was discovered by PTTEP in early 2007. The company is expected to spend about US$1 billion to develop the M9 field, with production starting in 2011 or 2112.

PTTEP is also the operator and sole share-holder of five potential offshore oil and gas blocks in Myanmar M3, M4, M7, M9 and M11, all located in the Gulf of Mottama.

PTTEP is currently buying about 1000 million cubic feet of gas a day (mmcfd) from Myanmar's Yadana and Yedagun gas fields via pipeline.

Originally published by The Myanmar Times, Rangoon, in English 25 Aug 08.

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Source: BBC Monitoring Asia Pacific