MOI Minister Mr Maung Maung Ohn and MIFER Minister Mr Aung Naing Oo issued the joint statement in response to recent media reports about energy shortages in the country and exits of some foreign energy companies, and fresh sanctions against Myanmar announced in recent months.

Addressing Energy Shortages in Myanmar

The recent temporary shortage of power was caused by a surge of global liquefied natural gas (LNG) prices, exacerbated by the Russia-Ukraine conflict, a weaker kyat currency as well as terrorist actions linked to the People's Defensive Force (PDF). Apart from advocating a boycott of utility payments since 2021, PDF terrorists blew up power lines from the Lawpita hydroelectric plant in Kayah State. These actions contributed to outages which caused hardship to ordinary citizens and small businesses in particular.

However, despite earlier civil unrest, the country has largely achieved national stability since the second half of 2021. Myanmar Government, under the direction of the State Administration Council (SAC) that was formed on 2 February 2021, is focusing efforts on various mitigating actions regarding the country's energy situation:

i) With the relative stabilization of global energy prices, the Government is seeking to increase use of natural gas for local power generation.

ii) The Government will step up repair of power infrastructure damaged by terrorists and increase security measures.

iii) It will accelerate power generation in the country from oil and gas sources through new investments, partnerships and actions such as conversion to use of existing facilities:

- the new Shwe Gas Pipeline was completed on 18 March 2022 and will generate about 330 MW of regular power.

- Conversion of some fertilizer plants (which use gas as feedstock) for immediate generation of 30 MW of electricity and accelerating works on other gas-fired power generators or waste-heat projects. A total of about 100 MW of electricity has been generated in Kyaukphyu using 20 million cubic feet of gas currently. After pipeline maintenance, this will expand to 30 million cubic feet per day and generate 195 MW.

iv) Major energy projects with China

As its largest neighbour and economic partner, China will play an increasingly important role in energy-related developments in Myanmar.

- With regard to the China-Myanmar pipeline project involving China National Petroleum Corporation (CNPC), the gas pipeline portion was completed at the end of 2013 and the oil pipeline portion was completed in April 2017. The project, which also includes a crude oil terminal, is CNPC's largest investment in Myanmar, and a centerpiece of China's Belt and Road Initiative in the country.

- 3 Chinese companies - Union Resources and Engineering Company (41%), Yunnan Energy Investment (39%) and Zhefu Holding Group (1%) - are partnering Myanmar's -Supreme Group (19%) to develop the 1,390MW Mee Lin Gyaing Project. This facility in Ayeyarwady region involves a LNG-fired power plant, a LNG terminal, a high voltage transmission line and gas pipelines to Yangon.

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