- Corporate News
Myanmar approves oil refinery project
Myanmar has approved a USD 2.6-billion investment by Longwin Global Petrochemical Co Ltd, a joint venture company, to build a five-million-metric-tonne oil refinery, along with related logistics facilities in the Tanintharyi region, located in the southern part of the country. The consortium includes China’s Guangdong Zehenrong Energy Co Ltd (GDZR), Union of Myanmar Economic Holdings Ltd (UMEHL) and an energy company under the Htoo Group of Companies.
The project will be located on a 733-acre land owned by UMEHL. The project includes construction of the oil refinery, sales and production of petroleum products and storage and logistics facilities. GDZR will build a tank farm and jetty for the purpose of importing crude oil.
The country currently has about 53 onshore oil blocks and 51 natural gas blocks. As of March 2016, China is the largest investor in Myanmar’s oil and gas sector, accounting for nearly 35% of the total investment of USD 14.4 billion. Myanmar’s current crude oil production is about 7,500 barrels, from both onshore and offshore wells, down from about 20,000 barrels per day n the 80s.
The project has been under planning stage since 2010 and the MoU between GDZR and UMEHL was signed in 2011.
The product output will be consumed domestically, as well as exported to neighbouring countries.