Yadanar Su, a Myanmar company has gained approval to run the liquefied petroleum gas plant (LGP) in Nayung Don alongside state-owned Myammar Petrochemical Enterprise (MPE).
According to an official statement from the Directorate of Investment and Company Administration, the joint venture has committed an initial investment of K3 billion (about US$2.2 million) for LPG production and distribution to handle the operation of the existing four filling stations in Ahlone, Insei, North Dagon, and Hmawbi township.
Three years ago, MPE has also invited expressions of interest from foreign investors to operate the LPG plant in Nyaung Don. That time in 2014 however saw only 11 pre-qualified companies shortlisted with no successful applicant announced.
The reason behind this request for investment is because the 2005-established Nyaung Don LPG plant is in dire need of an upgrade as to improve the declining quality of liquid petroleum gas extracted. The same can be said for state-owned LPG plants in the country including the ones in Minbu township and Kyun Chaung in the Magwe region.
The LPG composition in natural gas in Minbu LPG extraction plant is now around 1.7 percent, a fall from about 8.6 percent previously. Meanwhile, the Nyaung Don plant’s LPG composition is now at around 1.3 percent and Kyun Chaung 0.5 percent.
According to MPE, the state-owned LPG plants produce about 800 metric tons of LPG a day – this covers only about 19 percent of the country’s demand. The actual LPG demand in a year in Myanmar is between 50,000 to 60,000 metric tons.
This pose as a challenge in the country as it is facing a viable storage facility for LPG imported in bulk through a sea freight, replacing import through tanks from the border area.
Other local companies working on the import and distribution of LPG include Myanmar Liquefied Petroleum Gas and Parami energy.