Myanmar’s state-owned Myanma Petroleum Products Enterprise (MPPE) has signed a joint venture agreement with Puma Energy Group Pte Ltd to distribute jet fuel, the state-owned Myanma Alinn daily reported. Under the agreement, the two firms will establish National Energy Puma Aviation Services Co. Ltd. MPPE will invest USD 26 million in machinery and equipment while Puma Energy will invest USD 51 million in the joint venture, the paper said.
MPPE is currently the sole distributor of jet fuel in Myanmar, supplying 29 million gallons of jet fuel at 11 airports annually.
MPPE will receive USD 20 million from Puma Energy as a signing bonus.
Last year, MPPE chose Puma Energy from a short list of four firms as its partner to distribute jet fuel. Puma Energy Group operates in more than 40 countries, distributing jet fuel at 47 airports around the world. Puma Energy posted a turnover of USD 13.4 billion in 2014.
Demand for jet fuel at Myanmar’s three international airports in Yangon, Mandalay and Naypyidaw is expected to grow rapidly, with tourist arrivals rising steadily since a quasi-civilian government took office in 2011.