Myanmar used to rely on hydropower to cover most of its electricity demand, supplemented by low efficiency open-cycle gas power plants that operated mostly during the dry season (November - May). In recent years Myanmar suffered repeated power shortages due to rising electricity demand, hence it resorted to building some integrated LNG-to-Power plants as the fastest way to boost generating capacity and meet demand.
Work underway for two new FSUs
Yangon LNG, Myanmar’s first LNG import facility includes a Floating Storage Unit (FSU) where to store imported LNG before it gets transferred onshore and regasified for use as a fuel for power generation. Due to the shallow depth on the Yangon River, the FSU can only accommodate small-scale LNG vessels.
Mid-scale vessels can currently use a temporary jetty at Thilawa port. A permanent jetty is expected to be in service in July 2020 and will accommodate regular-size FSU vessel with a capacity of 2.8 Bcf.
In addition, the Myanmar government is supporting plans to build a second FSU associated power plant (1,230 MW) at the mouth of the Yangon River, near Kanbauk. The project is at a development stage and due operational by 2024. A small-scale LNG vessel is meant to shuttle LNG between the two FSUs at Kanbauk and Thilawa.
Two power plants to start up this summer, third in 2024
LNG imported at the older Yangon regas facility will supply integrated LNG-to-power projects nearby – the 400 MW Thaketa power plant, the 350 MW Thanlyin plant and the 1,250 MW Thilawa. Both the Thaketa and Thanlyin plants are expected to enter service this summer.
The larger Thilawa combined-cycle gas power plant is the planning stage and scheduled to start operations in 2024.
If the three plants run at a 45%–55% annual capacity factor, they will require between 160 million cubic feet per day (MMcf/d) and 200 MMcf/d of natural gas supply, an equivalent of 21 to 26 LNG cargoes per year (assuming LNG vessels of 2.8 Bcf capacity), averaging about two cargoes per month.
Plans for further integrated LNG-to-Power projects
Several other LNG import facilities and accompanying gas-fired power plants are currently being developed in Myanmar, though development of some projects is slow.
In the southwest, the Rakhine LNG import facility is currently under construction. It will supply the Kyaukpyu natural gas-fired power plant (150 MW capacity) due operational by the end of 2020.
The Mee Laung Gyaing LNG import terminal and a 1,390 MW gas-fired power plant are proposed in the Ayeyawady region. The project will utilize a Floating Storage and Regasification Unit (FSRU) and is expected to come online by 2024.