Myanma Electric Power Enterprise (MEPE) has issued more tenders for independent power producers to build gas-fired power plants in Yangon and Myingyan, according to an official.
Local and international companies have been invited to apply to generate electricity by gas engine or gas turbine, which will then be bought by state-owned MEPE. Both projects are relatively short-term, according to U Htain Lwin, the company’s managing director.
“These projects are a short-term solution to help generate more electricity for the coming hot season,” he told The Myanmar Times.
Electricity consumption in Myanmar is increasing by 13 percent to 15pc a year according to official figures. The country’s electricity consumption is over 2000 megawatts, but the rate rises during the hot season from February to May.
The Yangon power contract will be for five years, with a generation capacity of 200MW and the Myingyan project will be a year and a half, with an estimated power generation of 75MW, said U Htain Lwin.
Interested companies should submit proposals before October 1 for Myingyan and October 9 for Yangon, he said.
The developer will be responsible for arranging the location and the fuel for power generation in the Yangon project. Fifteen million cubic feet per day of natural gas from the Shwe gas field will be supplied for the Myingyan project.
“We do not have natural gas to provide for the Yangon project. The developer will need to arrange to import their own oil or gas,” said U Htain Lwin.
These latest tenders are aimed at filling the power supply gap until larger projects are completed. In some cases, this can take more than five years.
The government already has plans to develop larger gas-fired power plants in both Myingyan and Yangon.
Singaporean firm Sembcorp Industries and MEPE signed an agreement in early April to develop a 225MW gas-fired power plant in Myingyan. The US$300 million project will be completed in 2017.
Sembcorp will have at least an 80pc stake under a 22-year power purchase agreement with MEPE. Myanmar’s MMID utilities will also be a local partner.
MEPE also signed an agreement with Japan’s Marubeni Corporation in late May to develop a $1 billion 400MW gas-fired power plant in Thanlyin near to Yangon. The consortium includes Global Power Synergy from Thailand and Myanmar’s Eden Group, and will carry out a nine-month feasibility study before building the plant.
This is set to become the largest gas-fired power plant in Myanmar and its electricity will be distributed to the Thilawa special economic zone through the national grid.
MEPE also has two other short-term independent power-producer projects in Kyaukse near Mandalay and Kyaukphyu in Rakhine State.
American power company APR Energy is running an engine-based gas-fired power plant in Kyaukse under a one-and-a-half-year power purchase agreement. Hong Kong-based VPower Group was selected to develop an engine-based gas-fired power plant in Kyaukphyu last year.