Petronas LNG stated the deliveries were part of a sale and purchase agreement with CNTIC and VPower, signed in early 2020.
The two cargoes, with a total LNG volume of 190,000 cubic metres, were shipped from the Petronas LNG plant at Bintulu in the eastern state of Sarawak and arrived at the port of Yangon on May 7. Further cargoes will follow in due course to ensure a stable fuel supply for CNTIC and VPower’s three power projects.
VPower fast-tracks 900 MW emergency power
During the past summer, the Yangon area of the country was subjected to power cuts of up to six hours a day. The government wants to avoid a repeat of this dire situation; hence it launched a tender for three emergency power units.
The Chinese joint venture of CNTIC and VPower Group won the tender and is now fast-tacking works on two LNG-to-power projects to serve in the wider Yangon region as well as a third project in Myanmar’s Rakhine state.
Wärtsilä was awarded an order in February to deliver eight 50SG engines for two power plants with 292 MW combined capacity. The Finish manufacturer said the LNG-fuelled gensets are meant to be “installed and operational within a matter of months.”
“Endeavouring to deliver the much-needed electricity to millions of households in Myanmar, we set stringent requirements on product efficiency, reliability and safety, and also the suppliers’ capability of timely delivery,” said VPower Group’s chief commercial officer, Earnest Cheung. “Wärtsilä has proven in previous projects that it can be relied on to deliver on a fast-track schedule, and the high efficiency of its gas engine solutions is what is needed here,” he added.
Once commissioned, the flexible power plant can operate base load at high efficiency but can also provide balancing power. This will allow introducing more intermittent renewable energy sources to Myanmar’s power grid in the future.
Zeya and VPower build further four units
Together with Zeya Associates, VPower Group is building another four emergency power projects in Myanmar, after having won a competitive tender in mid-October 2019.
The LNG-fuelled power units are being built in the town of Kyaukphyu, Rakhine state, as well as in Thanlyin and Thaketa, Yangon state. VPower also secured a 20 MW project in Kyun Chaung that will be supplied by pipeline gas by Myanmar’s state pipeline company.
All these emergency power projects are due to start commercial operation in time for peak summer demand -- and way before Myanmar’s upcoming general parliamentary election which is likely to be held in November.